Condo or house and lot? 8 factors to help you decide

Share

Do you find yourself in a predicament whether to buy a house and lot or a condominium unit? Choosing a location, and determining the budget, will help you make a swift purchasing decision, but these don’t comprise all factors.

Inquirer Property asked property analysts the advantages of condominiums over house and lots, and vice versa.

Here are 8 factors your buying decision would most likely depend on:

1)Cost.
If both a condominium and a house and lot are located in the same prime area, the former is almost always cheaper, according to property analyst Enrique M. Soriano III. He added that reputable developers may even price condo units below P1 million in prime locations.

Compare this to the price range of an entry-level single-attached house and lot within Metro Manila but outside the central business districts: P1.5 million to P3 million, while mid- and high-priced houses range from P6 million to P25 million.

CB Richard Ellis Philippines’ data, on the other hand, showed that the price of a house and lot in the primary market in Metro Manila could go as high as from P22 million to P28 million.

Soriano, who is the Ateneo program director for real estate and senior adviser for Wong+Bernstein Business, said: “Developers’ relentless research and development and value re-engineering have significantly lowered construction costs that condominium price points are now comparable to the price of a low-cost house and lot.”

CBRE said that, although condominiums are recognized for their luxurious living themes, these are known to be more affordable than houses sold in most cities, such as in Manila. And unlike townhouses, condos are much more affordable.

2) Location.
In Metro Manila, the trend for prime locations has favored condominium sales, as these are the most reasonably priced residential units in the market.

CBRE Philippines said condominium projects are the most viable developments, given the limited amount of developable space in Metro Manila and in congested cities, and in cities, at least, condominium living is more practical for individuals or families.

3) Convenience and amenities.
For high-level executives in need to be located inside the business districts, living in a condominium puts them closer to the workplace, giving them the advantage of less travel time and transportation expenses.

Soriano observed that most condominiums offer amenities like pools, playgrounds, function rooms, and gyms that may be too expensive to put up in one’s own house.

He added that condo units also have 24-hour security and on-call maintenance, on top of building maintenance handled by the associations.

“Condos can also be used to earn passive income if you plan to sell or have it rented out once it’s ready.” he said.

4) Freedom of space.
On the other hand, a house and lot purchase, Soriano noted, offers more freedom in terms of area; you don’t share ownership of the property; there is no common ownership of the land (The life of a condo is only good for 50 years); once fully paid for, it is considered yours, and that no one can evict you from your place.

“A house and lot is a long-term investment that you can pass on to your children and grandchildren. Unlike condominiums, house and lots are generally more spacious,” shared Soriano.

5) Improving highways, transport systems.
Here’s another advantage going for house and lot buyers. “There’s rapid urbanization outside Metro Manila, and with the development of improved roads and highways, the provinces are now more accessible,” said Soriano.

6) High rise vs low rise.
Unlike in horizontal developments (such as subdivisions) where the risk of flooding can be higher, condos, due to their vertical nature, are rarely affected by floods.

7) Overseas Filipinos’ exposure to high-rise living.
Long-term overseas workers in areas like Singapore, Hong Kong and Middle East have grown more accustomed to condo living.

“The past 10 years saw a dramatic change in what marketers term as the UAI metrics (Usage, Attitude and Image). Fortifying UAI is the growing individual affluence and behavior of a new market that has embraced condominium living. The major drivers of this shift certainly point to the global Pinoy and the internationalization of the property sector,” said Soriano.

8) Status in life.
Empty nesters (Couples whose kids have grown up, and have moved out) will most likely purchase a condominium and sell their houses. Young professionals would also most likely lean toward a condo purchase.

By: Tessa Salazar, Philippine Daily Inquirer, March 29, 2014

Energizer Philippines

Dear Rick,

I’d like to thank you and your team – Joey Radovan and Morgan Mcgilvray in particular, for the assistance given to us during our recent Office Relocation process.
They were very well organized and helpful:

– Our site visits were conducted in a very timely manner and my management committee received clear and useful guidance on various aspects related to site selection –from what to look for in terms of building services, location, etc., as well as guidance on the discussion etiquette they should observe in order to safeguard the confidentiality of issues that could be valuable at the time of final selection and negotiation of the site.

– Both assisted us in the selection of the Office Design and Construction supplier; they were present in all the presentations and gave us objective feedback and opinions that helped my team feel more educated and confident about the decisions they were making.

– We also received guidance with various topics that arouse secondary to our office relocation, such as off-site document storage options just to name one example.

– They continued their liaison and support with the landlord and constructors throughout the process of negotiating and signing the lease, as well as during a very tight construction and relocation schedule during which a lot little (important) issues arise that must be solved swiftly in order to keep the deadlines.

The above is by no means a comprehensive list, and I’d like to extend our thanks to your team who supported Joey and Morgan in giving us such excellent service.

We are now pretty much settled in without any business interruption and with our colleagues quite happy about our new office and location; do come to visit us when you get a chance!

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

We would like to hear from you on how we can serve you better. Please fill out the form below and we will get back to you as soon as we can.

Name

Email Address

Subject

Message

Captcha

CAPTCHA code

Share