Nothing beats the feeling of saving up and then purchasing your first home. Yet, one of the most fundamental decisions you must make before the purchase is choosing the property type.
Those looking to get a home in the Philippines can choose from a variety of property options, but condominium buildings and traditional house and lots are two of the top varieties. Find what suits you best between a condo investment versus a house and lot in this article.
Overview of Condominiums and House and Lots
Vertical homes and detached single-family houses come with their own set of advantages and considerations. They also have their own market with diverse lifestyles, economic backgrounds, and personal preferences.
Let’s explore the unique characteristics and modern living offerings of condos and traditional houses to help you make a property investment decision you’d be proud of and won’t regret in the future.
Condominium Units
A condominium, or “condo,” is a type of real estate property that consists of an individual unit in a multiple-unit building. Condo dwellers own and have exclusive use of their individual units.
However, everyone in the building has a right to and share in the use of the common areas, which include the building’s infrastructure such as floors, walls, hallways, elevator shafts, stairs, and amenities such as the condo gym, clubhouse, and swimming pools.
Also, there are different types of condominium unit that suits your interest and budget such as the studio unit offered and is available at Asterra.
House and Lots
On the other hand, homeowners purchase both the building and the land it is situated on. The absolute ownership of the property is yours to keep when you purchase a house and lot together. Unlike condo owners, it is easier for them to make modifications to and enjoy a more private setting with this housing type since you have total control of the property.
For families looking to expand into a more extensive place of residence, the purchase of a traditional house may be the best option. You also have more indoor and outdoor space, which makes it easier to have guests, families, children, and pets to stay with you.
However, there is more to choosing this property type over condo communities and apartment buildings than meets the eye.
What to Consider When Choosing Between a House and Lot and a Condo Unit
More than a few factors need to be considered when purchasing the right property, particularly in the Philippines, to determine if a condominium development or a house and lot is the smarter choice for you. Here is a list of considerations in purchasing a condo vs house and lot in our country.
1. Cost effectiveness and savings
When you are buying a real estate property for an investment or a starter home, the price of the property is one of the most essential considerations you will make. Whatever type of property you choose, it must be cheap to you and fit inside your budget.
Ideally, your chosen residence should not cost more than a quarter of your gross monthly income. Otherwise, you risk depleting your savings.
House and lots are more expensive overall, not just because of the cost of the land properties itself, but also because of the real property tax that must be paid on it.
There are still some options for buyers who are looking for cheaper and more affordable house but typically, these are located in less-developed urban areas or in outlying provinces. If you want a bigger space at a price of a condominium, then a single-family house outside the metro can be advantageous.
Unlike a condo owner, who is typically required to share common areas with other residents, the larger space occupied by a traditional house almost certainly results in higher monthly utility bills.
It also features more storage space that is useful such as basements and garages. However, a larger living space demands a higher cost due to maintenance and other utility costs.
In comparison to house and land, the cost of condo ownership is typically more reasonable. It only offers practical living space and common areas which is why it is more affordable and less expensive.
However, most condominiums typically don’t provide the same level of privacy and space as provided in a house and lot because you are living in the same condo building but if you choose to buy a pre-selling one, it could be significantly cheaper.
2. Locations offered for condo dwellers and house and lot owners
When looking to buy the right property for you, being in a prime location is the single most important consideration you should make. Regardless of future changes to the real estate market, investing in properties in desirable or emerging locations in Greater Manila Area (GMA) and regional areas nationwide will continue to be profitable and increase your property’s market value over time.
Because there is a limited amount of land available for construction in urban areas, a rising number of people are opting to live in high-rise structures. Most condominium units are strategically located in desirable locations such as in Metro Manila, putting you handy at all points of interest.
On the other hand, suburban areas are more likely to provide house and lot packages. These residences offer you a place that is much more expansive and open, in addition to an atmosphere that is serene and removed from the commotion of the city.
3. Overall security and sense of privacy
Aside from the privacy of their units, condo residents share all of the property’s amenities and more. On the other hand, condo units are potentially stricter about security offering a peaceful neighborhood.
There are condo rules implemented to enhance the safety of each condo dweller in their personal sanctuary. These buildings have key cards, security that is on all the time, and CCTVs. Additionally, most condo projects also feature a guardhouse from which security guards patrol the premises around the clock.
A detached house, on the other hand, gives its owner more freedom and privacy. In well-developed subdivisions, the units next to each other are a good distance apart and have walls between them. That’s why some people choose single-family house due to more privacy.
Also, some of the packages for sale in the Philippines are in more open areas. The people who live in these communities are mostly responsible for protecting their homes and following the rules set by the local government. You’d be lucky if you find a house and lot that is inside a guarded subdivision and has homeowners association since it adds up to better security and upkeeping of the community.
4. Available amenities and neighborhood accessibility
Since the majority of condominium units are strategically positioned in central business districts, such as Metro Manila, they make all points of interest more accessible. It may be within walking distance of your place of employment and situated near commercial areas, business centers, and convenience stores, making it a practical solution for your daily necessities as a working professional.
Condos also come with a large number of amenities that association fees cover for condo residents. Most condo projects have a swimming pool, fitness centers, and function rooms, which are paid for through the condominium association fees.
On the other hand, it is very rare to find a house and lot located in a community that offers the same amenities as condominiums. If there are, the prices of such homes are very likely to be expensive since condominium amenities are considered a “premium perk” for most people.
5. Maintenance and utility costs
Most condominiums on the market in the Philippines are managed by a professional management company or condo associations, which is responsible for all the maintenance and repairs. But in doing any kind of repairs and some renovations, the condo dweller is required to obtain consent from the property management office.
That is just one of the several limitations that come with condo living. As a side benefit of having to pay such housing amortization and association fees, this inevitably comes with the territory.
Association fees collected from condo dwellers in addition to their monthly mortgage payments are used to fund the building’s operational and maintenance costs. Condo units typically have a higher monthly cost due to the collecting of membership dues or parking fees than houses do.
Unlike condo owners, house and lot owners have greater autonomy and total control of their property. This means they are in charge of all building maintenance of their own properties.
Investment for House and Lot and Condo Owners
Overall, both condominiums and house and lots give a great opportunity for income, investments, and property ownership perks. Just make sure to choose a property that has a big potential to earn and is very likely to last and give you a good return on investment.
Why Choose Asterra for Your Compact Living Goals?
Asterra offers the newest and most cost-effective condominium brand in the Philippines. In Asterra, families and young professionals can find a variety of options for a high quality of life that includes a healthy work-life balance, time for fun, and proximity to nature.
Moreover, a modern, classy home is reimagined at Asterra. They provide larger and more thoughtfully designed spaces and facilities that promote connection with other unit owners while also giving modern comforts with various amazing interior compact spaces. Asterra intends to reinvent what a comfortable home entails and will surely make your city life incredible.
Value-Priced Condominiums
The company offers affordable condominium units that Filipinos could buy within their budget. Asterra aims to give Filipino families the opportunity to own a home and a condominium at such a reasonable price.
Strategic Location
They offer prime locations in areas posed for growth. You’ll get easy access to numerous commercial establishments and can be a walking distance to shopping malls and transportation services since had numerous condominium projects in the heart of the city.
Safe and Comfortable Condo Life
They are committed to providing residents with the finest degree of security and convenience with their provided security personnel and condo rules. You will feel comfortable in your own unit and be at ease with the peaceful neighborhood amid a growing cityscape.
Top-Quality Facilities
Asterra promotes community and healthy lifestyles with more space with shared amenities such as a fitness center, function room, clubhouse, gym, basketball court, open greens, a playground, tranquil landscapes, and pool area to be enjoyed and shared by families and neighbors.
A Practical Investment Decision
You may rest easy knowing you get the best value for money with Asterra. Purchasing one of these condominiums is a substantial financial commitment for young professionals, small families, and even overseas Filipinos. But it will all pay off in the form of property appreciation as well as a richer, more fulfilling condo life in the long term.
