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Real Estate 101

House versus condominium

Investing in real estate can be daunting, and the decision is made even more difficult if one is made to choose between purchasing a landed house or a condominium unit. Both types of properties have their own pros and cons. However, choosing one over the other really depends on the buyer’s preference and how the property will be used.

Fortunately, investing in any type of property follows a set of tried-and-tested principles. For example, if a person is looking into buying a property for the purpose of financial gain, then a condo is the better choice. Compared with a landed house, the cost for upkeep of a condo apartment is not as exorbitant, and the property is kept contained within a complex it is part of. And depending on location, a condo is easier to lease out, which can be performed through a registered property management company. In addition, if both condo and landed house are located in a prime area, the former is almost always cheaper.

Condos, however, also have disadvantages. One major drawback to condo life is association fees, which are used to building maintenance and amenities, such swimming pool, gym, etc., and the amount of which depends on how big your apartment is. These fees can increase when extra money for maintenance or upkeep is needed. In addition, some buyers do not like homeowners’ rules and restrictions associated with condos, and the noise that comes with having a neighbor living too close to you.

association dues

A landed house, meanwhile, provides a private and most often larger place. It also offers the freedom to have the entire place for yourself, to crank up the music when you want to, to have pets, and to remodel or make changes without needing to consult others. However, having the entire place for yourself means that the cost associated with its upkeep is solely your own and utility bills are usually higher because houses have more space. Although improvements may increase a house’s resale value, they also require time and money.

Whether it be a house or condo, investors in Philippine properties need to first figure out what they really want in a property before buying one, including how it will be cared for if the owner is not the permanent occupier. Understanding this condition will help in purchasing the right property versus being stuck with one that ends up becoming a lot of work and expense instead.

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