The Philippines’ real estate market is booming. You drive around your area, and you’ll see signs of it. Developers are building condominiums left and right. That’s understandable given the country’s expanding middle class. More and more families need homes. And now, more than ever, these families can afford to pay the mortgage for these properties.
It does not hurt that the country’s real estate purchase process is pretty straightforward. You look into listed properties, choose, and let your estate agent do the rest. The most that you’ll have to accomplish is sign pertinent documents such as a Contract to Sell (CTS) and a Deed of Sale.
However, you cannot get into real estate investing blindly. To avoid future regrets, you need to be as informed as possible. That is most true if you’re looking to invest in a condominium unit with significant differences from investing in a standalone house. The first order of business is knowing the pros and cons. Here are some of them.
1. Value appreciation
Condos attract many young professionals who flock to urban areas looking to pursue their chosen careers. This movement places condos in the top-tier of sought-after urban properties. That means investing in a unit puts you at an advantage. The more demand there is, the higher the price tag of supply. Expect a 10% annual appreciation of your unit’s value.
2. Proximity to places of interest
Developers build condos in strategic places. That’s one of the major selling points of these properties. Usually, they provide easy access to shopping districts, public transports, and even schools and corporate hubs. That means you’ll be spared from the burden of a daily commute, which in Metro Manila is worsened by awful traffic.
You get to live in a building that has everything you need. You go to the ground floor, and there are places to shop and dine. Most condos have recreational and fitness facilities like a pool and a gym. During weekends, you no longer have to venture far for recreation or relaxation.
CCTV cameras are everywhere, plus 24/7 security personnel looking after the building and its residents. That should you give you peace of mind. There’s no need to worry about burglars. There will be alarm systems too for emergencies.
5. Less maintenance
You do not have a front yard or back yard to maintain. You won’t have to worry about a leaky roof or dysfunctional plumbing. The entire building community assumes the main building’s maintenance. All you need to look after are minor repairs in your unit.
6. Possible lack of privacy
Expect to live close to other condo dwellers. There’s literally only a wall separating you from the next tenant. That might be an issue if you’re unfortunate enough to end up in a unit where the next-door neighbor’s prone to shouting.
Condos differ in terms of the rules they impose. It pays to know the fine print before signing a contract. For example, if you have a canine companion, make sure that your chosen building welcomes pets. Otherwise, you’re better off living someplace else. Other usual prohibitions include late-night partying and karaoke.
8. Building maintenance
The costs of building maintenance are divided equally among tenants. However, there are instances when a tenant drops out from the communal responsibility, likely because of financial strain. That means your share will see a slight increase. Now, if many tenants do the same, you might end up paying more.
Some condos have strict rules when it comes to renovation. You cannot just update your unit without consulting with building personnel. The reason for this is the developer prioritizes the safety and comfort of the entire community. Consult with your building’s design guidelines before pursuing a project.
10. Potential difficulty to resell
As mentioned earlier, condos are most attractive to young professionals. That significantly limits your prospective buyers should you decide to resell. Most families or couples planning to start a family favor standalone houses in subdivisions where their kids will have ample space to roam. Still, with the country’s burgeoning industries, you can rest assured there’ll be no shortage of young professionals in search of a home.
Investing in real estate is an excellent way to buff up your financial health. Most properties appreciate over time. That is most true if relevant factors align in your favor, such as the country’s economic and political state. If those are in order, the money you put in real estate will gain you profit—passively, that is. You sit pretty while your investment does the work. Just make sure you explore all the pros and cons, such as the ones listed above. That’s the only way to avoid future regrets.