House vs. Condo: What Property Should You Get?

One dilemma of people living in the Metro and suburban is to choose whether to buy and live in a condominium or house and lot. With the traffic and daily hurdles that the household encounters and juggle every day, finding a convenient, serene, and relaxing place to rest and live in is bliss.

Some find living in a condominium convenient because it’s located few steps away from their office and they don’t need to go through traffic every day, others prefer getting a house because they have the flexibility to do whatever they want in their space, but, which property suits people living in the metro and suburban? a condominium or a house?

WHY OWN A CONDOMINIUM?

A condominium, or condo, is an individually owned unit in a building of multiple units. A condo owner has the right and control to the space inside their unit while the community property like the floor, walls, sidewalks, staircase, and other property outside the unit is being shared with other condo owners.

ADVANTAGE OF BUYING A CONDOMINIUM

Affordable Compared to House and Lot

Condominiums that are located outside the business districts Bonifacio Global City and in Taguig and Makati City are affordable compared to houses and lots in Metro Manila.

House and lot cost higher than a condominium because houses occupy large areas. The average price of a house and lot for sale in Metro Manila is around Php 25,412,601 or Php 105,940 per square meter. Makati is ranked as the most expensive which costs around Php 155,360,000 or Php 275,422 per square meter and Caloocan has the most affordable houses and lots which is around Php 3,775,242 or Php 54,813 per square meter.

On the other hand, the average price of a condominium for sale in Metro Manila is Php 4,200,000 or Php 113,000 per square meter. Like houses and lots for sale, Makati is ranked the most expensive which costs an average of Php 160,400 per square meter. It is being followed by Taguig which is around Php 136,000 per square meter and Pasay which costs Php 109,300 square meters.

The average price of a house in Metro Manila is about six-folds of the average price of a condominium. This is also one of the reasons why middle-income families and first-time property buyers yield to the idea of getting either a low-end or mid-range condominium.

Convenient Location

Working professionals are the group of people who usually prefers to buy or own a condominium as they do not need to go through the hassle of daily traffic.

Staying in a condominium, especially if it is in or near the business districts, has the privilege of living near commercial establishments such as malls, grocery, supermarkets, restaurants, or convenience stores, laundry shops, and transportation hubs which are sometimes situated on the condominiums ground floor or just a few steps away.

Amenities

Condominiums usually have amenities that provide their dwellers a healthy and relaxing lifestyle, some of which are pools, sports facilities such as basketball, tennis and badminton court, gym, lounge areas, function hall, and playground.

Another advantage of getting a condo is having a receptionist that checks and verifies each condo visitor and assists condo residence in either emergency cases or in accepting deliveries whenever they are not at home.

Security and Safety

Aside from the receptionist who checks or calls the unit owner to verify their guests, condominiums have 24 hours security service and CCTV cameras installed in the building.

Fire sprinklers, smoke detectors, and fire distinguishers are also installed on the hallways of the building.

Low Maintenance

Condominiums require less maintenance as the unit owner’s responsibility to maintain is what is inside or the interior of her unit while every property on the outside is being maintained by the condo’s administration or developer.

DISADVANTAGE OF BUYING A CONDOMINIUM

Condominium Fees

A general requirement of a condo owner is monthly fees or association dues that usually range from Php1500 to Php 25000 or depending on the size of the unit, location, and property developer. The most common condo fees are:

• Association dues
• Membership fees
• Realty tax on your unit
• Share of realty tax on the land where your condo is constructed.
• Share of realty tax on common areas.
• Parking fees

Condo owners also face a penalty whenever they do not pay their association fees on time. Late payment is usually charged at 4% interest per month.

Aside from the monthly dues and fees, condo owners also need to settle either quarterly or yearly their RPT or Real Property Tax for their unit and on the shared areas and land where the condominium is developed.

Limited Space and Strict Regulations

An average condominium in the Philippines is as small as 18 square meters for a studio type or less than 50 square meters floor area. Unlike living in a bungalow where you can always redecorate, rearrange, or create a new space, living in a condominium, especially on a studio-type unit, requires less space to design and minimal furniture and appliances to fit and rearrange.

Aside from the limited space, some condominiums have strict regulations regarding the interior of the units as each unit have their specifications and limitations when it was built. Extension plans are also not allowed because they may affect building integrity. In terms of repair or alteration, condo owners should also secure permission from the property management office of the condominium.

Living in a condo is also bound by condo or house regulations such as the limitation of guests, pets, and parties.

Condo unit owner also does not have their own outdoor space as they share these facilities or common area to other residents.

Lack of Privacy

Living in a condo means other households are living above, below, and on the sides of the unit you owned. Sometimes you might hear noises from your neighbors like people shouting, babies crying, and moving pieces of furniture. At the same time, you also need to be cautious with your movements and the way you talk as they can also hear noises coming from your unit.

THINGS TO CONSIDER WHEN BUYING A CONDOMINIUM

Buying a property like a condominium is a good investment but you also need to consider things before going ahead and paying for either the deposit or signing the Deed of Sale. Here are the five basic things that you need to consider when buying a condominium:

Assess your needs.

Before buying a condominium, you need to assess if your needs such as space or size of the unit, privacy, convenience, comfort, security, and safety will be provided by the condominium that you are eyeing to purchase.

Research for Reasonable Offers

Developers offer different lucrative packages, but you need to be on the lookout with their association fees and the amenities that they have. Make sure to check on each amenity, how to avail it, and are they worth the price that you will be paying.

Location

The location also plays a vital role in choosing a condominium. A condo unit that is in a good area guarantees ease of access to conveniences such as hospitals, restaurants, schools, and banks.

The location also determines the potential price appreciation of a unit. If the location of the condominium is in a region on the rise or commercial area the higher the price appreciation of the unit.

Review the Association Dues and Fees

Another thing to consider when buying a condominium is the association dues and fees such as:

• Association dues
• Membership fees
• Realty tax on your unit
• Share of realty tax on the land where your condo is constructed.
• Share of realty tax on common areas.
• Parking fees

Aside from this, it is also a must to check if there is a penalty fee for late-payments and the RPT or Real Property Tax for both the unit and the shared areas and land where the condominium is developed.

Check for the Restriction.

Another thing to check is the restrictions in the condominium such as limitations regarding pets, expansion or interior of the unit, visitors, and parties.

Financing Option

There are two options to consider when you mortgage a condominium in the Philippines – Bank Financing or Pag-IBIG Housing Loan.

Most banks are now offering financing options for condominiums, the rate and interest may vary from one bank to another while Pag-IBIG Housing Loan is up to P6,000,000 or 80% of the total accumulated value (TAV).

For interest rates, banks offer low rates with a fixed rate for about 1 to 5 years. Pag-IBIG Housing Loan, on the other hand, offers fixed pricing for up to 30 years.

WHY OWN A HOUSE AND LOT?

Having your own house and lot is everybody’s dream and goal as it means comfort, flexibility, and security. Other advantages of owning a house are the following:

PRIDE OF OWNERSHIP

Pride of ownership tops the reasons why Filipinos buy houses and lots. Why? Having your own home gives the satisfaction or sense of personal growth for achieving a goal or a dream and at the same time sense of security and stability.

APPRECIATE OVERTIME

Houses and lots are one of the best investments you can get as it grows over time. This can be due to factors like the accessibility of the property’s location, zoning laws of an area, and inflation policies.

Aside from this, the value of the property increases faster if it is located in regions on the rise or those areas located in or near commercial areas, business districts, and tourist spots.

STABLE MONTHLY PAYMENTS

Managing your monthly budget is easier if your monthly payment is stable.

When you choose to mortgage a house and lot, the interest rates provided by either bank financing or PAG-IBIG, are fixed. Banks usually offer fixed interest rates for about one to five years. Pag-IBIG Housing Loan, on the other hand, offers fixed pricing for up to 30 years.

Fluctuating property taxes or property insurance may change, but that may not happen as often as how rent payment increases.

FLEXIBILITY

Having your own home gives you the liberty to do whatever you want in the four corners of your it. This means you have a sense of independence where you can paint the walls any color you desire, attach permanent decors and fixtures or decorate your home according to your taste and preferences. You can also build a mini garden, install a ready-made swimming pool, or host parties without asking permission from any landlord.

SPACIOUS AREA

Houses have spacious areas that can be converted to living rooms, kitchens, dining areas, bedrooms, and in some cases space for laundry, dirty kitchens, garage, and garden.

DISADVANTAGE OF OWNING A HOUSE

Costly Maintenance

Given that you have total control of the property means you have the full responsibility to maintain, repair, and renovate the property.

Long Travel Time

Affordable and available houses and lots for sale are now situated in suburban areas which would take around two to four hours travel time from business and commercial districts.

WHAT TO CONSIDER WHEN BUYING A HOUSE AND LOT?

There are five things that you need to consider the most when buying a property. These are the location of the property, the reputation of the developer, budget or how much are you willing to pay monthly, the length you want to pay the mortgage, what financing should you choose, and the property title.

LOCATION

One of the challenging things to do and consider when buying a house is its location. An ideal location is near the workplace and has accessible routes going to the hospital, schools, market, malls, and police station. Areas like this are called regions on the rise or near commercial areas, business districts, and tourist spots.

The price of properties located in regions on the rise might be high, but it can cut some expenses in transportation in the long run. It is also convenient to live in locations like this because it is accessible to your daily needs.

Properties located in regions on the rise appreciate their value faster than properties away from business districts and commercial centers.

REPUTATION OF DEVELOPER

The reputation of the developer or home builder is another thing that to consider. Nowadays, a lot of fraudulent activities in the real estate industry happens. Transacting to a reputable developer means fewer chances of experiencing scams, schemes, and fraud.

A credible land developer maintains their standing, executes timely, and delivers what they promise. They ensure the quality of the house, its surroundings, and the community they build, to the material they use and design aesthetics. They also provide a comfortable and lavish lifestyle to homeowners by building amenities such as 24/7 security, clubhouses, internal access roads, fitness center, and playgrounds.

One reputable developer in the Philippines is Vista Land and Lifescapes Inc. or commonly known as Vista Land. Vista Land is the largest homebuilder in the Philippines that offers a wide range of housing products that cater to the needs of every Filipinos from luxurious houses, mid-income housing segments, affordable low-cost housing, and vertical residences. Vista Land is also known for its real estate’s brands such as Brittany, Crown Asia, Camella, Lessandra, and Vista Residences across the Philippines.

BUDGET

Budget plays a major role when planning to buy a house and lot for sale. It dictates what type of house and lot you can afford to get and pay. What you need to consider when checking your budget are:

• Reservation fees and downpayment for the house and lot.
• Monthly mortgage fees
• Real property tax
• Association fees
• Property insurance

WHAT FINANCING TO CHOOSE

There are two options to consider when you mortgage a property in the Philippines – Bank Financing or Pag-IBIG Housing Loan.

The two might seem the same, but they have different requirements, to the loan amount, terms, and interest.

Pag-IBIG Housing Loan has few restrictions and requirements for applicants compared with bank financing. Banks, on the other hand, conduct background checks and require submitting supporting documents.

For the loanable amount, the maximum for the Pag-IBIG Housing loan is up to P6,000,000 or 80% of the total accumulated value (TAV). Bank financing varies. It may be the exact amount or 70-80% of the appraised property value.

Lastly, the banks offer low-interest rates with a fixed rate for about 1 to 5 years. Pag-IBIG Housing Loan, on the other hand, offers fixed pricing for up to 30 years.

PROPERTY TITLE

Another consideration that you need when buying a house and lot is the authenticity of the Property Title.

To make sure that the title is clean, it is a must to check the following:

• Quality of the paper used.

• Verify the identity of the seller.

• Check the description of the real estate on the title.

• Check the status of real property taxes.

HOUSE AND LOT OR CONDOMINIUM?

Choosing between a house and lot and a condominium unit is a tough decision especially if you are living in the Metro, but it would still depend on the needs and requirements of the home buyer. Some might find the price of a condominium unit lower compared with a house and lot. While others might think that getting a house and lot is spacious compared with a condo unit.

Some might consider affordable houses and lots that are two to four away from commercial and business districts because they are relaxed on a spacious and private house compared with condos that are situated in the business district and near commercial areas.

To check Vista Land and Landscapes house and lots and lots for sale in key provinces and regions on the rise in the Philippines, visit ALL PROPERTIES.