Picking a new property to call home can be both an exciting and daunting task. You should know where to put your money and make sure that it is worth the investment. Let’s go to that word: Investment, what type of property can you best invest in? A house or a condo unit? Both types of properties have their unique features and benefits, making it a tough decision for potential buyers. In this guide, we will discuss the key differences between homes and condos to help you make an informed decision on which one is the right investment for you.
Location
One of the main factors that can influence your decision is the location of your home. Are you into a suburban type with neighbors across the road like a private subdivision or condo living? These are worth delving into for this will drive your decision at the end of the day.
House
Let’s say you own a house in Makati or Taguig, the distance of your home is just a few drives away from the school or your workplace. The advantage of owning your property is that you have privacy and the space that you possess is truly your own.
Condo
Condominiums are far closer to Central Business Districts and some townships incorporate residential and commercial developments under one location. This makes key landmarks like shopping, schools, and offices a few minutes away from the apartment that you are staying in.
Cost
Now let’s talk about cost. The price of houses and condominiums varies where it is located. For example, a condominium in Laguna is different from the ones in Metro Manila like Mandaluyong or Pasig. It is because the other one is in the province and the second is positioned in the urban setting. Apart from that there are also factors that you need to know. Here is the breakdown:
House
Once you finished all the paperwork and you are now ready to move into your new house, make sure to know the following:
Homeowners Association fees
Is your new home in a private subdivision? You should be wary of the Homeowner’s Association or HOA. For every home that is built inside the premises, the resident should pay for HOA fees depending on the contract that you signed. The residents’ payments are used to maintain amenities and facilities such as the swimming pool, sports center, fitness center, function rooms, and so much more. Read the contract before signing so that you are knowledgeable about the hidden fees.
Fixing and Renovation
When deciding to purchase you should be able to think long-term. Are you ready to shoulder maintenance and renovation fees in the future? You are the one who will shoulder it all to make sure that you are prepared. Also, consider the costs of maintaining and renovating your house over time. Budgeting for these expenses is essential to ensure the property retains its value and remains in good condition.
Real Estate Property Tax
Real Estate Property Tax or amilyar in the Philippines is the responsibility of the individual to pay to the government. RPTs are levied by local governments based on the assessed value of the property and play a vital role in funding public services and infrastructure. Property taxes can vary by region and are calculated on factors like the property’s fair market value, assessment ratio, and tax rate. It’s important to differentiate between real estate taxes paid on houses or condos and personal property taxes. If you failed to pay your taxes on the last days of January you can still pay it in installments. Don’t forget these responsibilities for there are penalties every time you miss the deadline that leaves your property for auction.
Condo
The cost of condominiums will depend on their location. If the property that you are eyeing for is at the center of the city then it will be more expensive. An example of this is if you pick let’s say an apartment for sale in Bonifacio Global City and Ortigas Center the price of the apartment will be far more expensive than picking a condominium outside of the city center. Also, some cities in Metro Manila provide affordable condominiums available for occupancy some of which are Quezon City, Mandaluyong, and Parañaque. Flexible rates are also available for what you are looking for. It is still advisable to conduct your research or even consult a Real Estate professional to avoid scammers or even find the great deal that is the perfect fit for you.
Space
Now, space is everything, it is where you get things done. There is a huge difference when comparing the pros and cons between houses and condos. Some of the factors you should keep in mind are the following:
House
Owning a house means you have control over how much space you will have. It will depend on whether you build a house from the ground up or by searching hundreds of listings online or by attending open houses. Also, houses generally offer more space compared to condos. You will have access to your yard, garage, and possibly multiple floors of living space. This means you will have more room for storage, hobbies, and entertaining guests.
Condo
On the other hand, condos usually have limited space and are designed for more compact living. Choices are available such as a bi-level type or a penthouse but are pricey and depend on the location. You may not have access to a yard or garage, but you will have access to shared amenities such as pools, gyms, and common areas. Some condos also offer luxury features like concierge services and on-site security.
Maintenance
When it comes to real estate investments, one crucial aspect that often gets overlooked but significantly impacts long-term costs and satisfaction is maintenance. Both homes and condos come with their own set of maintenance, and understanding these differences can help you make an informed decision on which type of property aligns best with your investment goals.
Home Maintenance
As everyone says, your home reflects your personality. Cleaning and making sure that your home is tidy is doing your part to be a responsible homeowner. When owning a house, you have complete control over the maintenance and repairs of your property. Home maintenance can be divided into 2 sections: Interior and Exterior Maintenance.
Interior Maintenance
Homes typically have more space compared to condos, which means more areas that require upkeep. From plumbing and electrical systems to appliances and HVAC units, there is a wide range of interior components that may need repairs or replacements over time. As a homeowner, you bear the sole responsibility for these maintenance tasks, which can sometimes be unpredictable and costly.
Exterior Maintenance
Owning a standalone home means you are responsible for maintaining the entire property, including the roof, siding, landscaping, and driveway. While this offers more control over customization and landscaping choices, it also entails greater time and financial commitments. Regular tasks like gutter cleaning, lawn mowing, and exterior painting can add up in terms of both effort and expenses.
Condo Maintenance
One of the primary advantages of owning a condo is shared maintenance responsibilities. Condo associations typically manage exterior maintenance tasks such as landscaping, roof repairs, and building upkeep through monthly maintenance fees. This arrangement can provide a sense of convenience and predictability for owners, as they are not solely responsible for all maintenance duties.
Limited Control
While condo living can be low-maintenance in terms of exterior upkeep, it also comes with restrictions on individual customization. Renovations within a condo unit may be subject to approval from the association, and the overall look of the building’s exterior is managed collectively, limiting personalization options.
Financial Planning
Condo owners benefit from a more predictable maintenance cost structure due to the monthly fees paid to the association. These fees contribute to a reserve fund used for major repairs or upgrades, helping spread out the financial burden of maintenance tasks among all unit owners.
Ultimately, the decision between investing in a home or a condo boils down to your lifestyle preferences, financial situation, and willingness to manage maintenance responsibilities. Homes offer autonomy and space but require more hands-on maintenance, while condos provide convenience and shared upkeep at the cost of some control over customization.
