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Condo vs. House: Which One Should You Invest In?

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BY JUAN DELA CRUZ

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If you're new to investing, you're probably looking into putting your money in a real estate property. This is a great way to grow your money because real estate always appreciates over time. This means that no matter what happens to the market, you'll still gain profit from your investment. 

As you start your research, you might find that you have several real estate investing options. You can either choose to invest in a residential property, such as a house and lot and condominium unit, or a commercial property. 

Although a commercial property may give you the best ROI, it may be risky to invest in one if you're new to real estate investing. This is because commercial properties are often more expensive and difficult to manage than residential properties. 

So, if you're a first-time investor, you should stick to investing in residential properties built by reputable real estate property developers. Now, the question is, which one should you invest in? A condo unit or a house? To help you decide, we've listed the pros and cons of buying a house or condominium unit in the Philippines. 

Pros of Investing in a House 

Investing in a house might seem like a more expensive option, but there are actually several advantages to it: 

Full and Exclusive Ownership 

When you buy a house and lot, you get exclusive rights to the piece of land and property that you bought. This means that you can do whatever you want with your house. You can renovate it, sell it, or rent it out without having to get permission from anyone. 

Peace and Privacy 

Most of the houses being sold nowadays are located in subdivisions away from busy commercial areas. This allows you to live on a property with less foot traffic and quieter streets. So, if you value your peace and privacy, buying a house and lot is the best investment option for you. 

Bigger Space 

Another thing you get to enjoy when you invest in a house is bigger space. Although a condo unit can also offer ample space, it's nothing compared to an actual house. With a house, you get more rooms that can fit more people. Most of the time, houses also come with an outdoor space, which you can use for gardening or hosting social events. 

Long-Term Investment 

If you're looking for a lifetime asset that you can pass on for generations, you should buy a house. Because of its long-term appreciation value, your children and grandchildren can enjoy the fruits of your investment in the future. Your land's value will also steadily appreciate over time, even as the value of the house itself may decrease. 

  

Cons of Investing in a House  

Although a house is a decent initial real estate investment, it still has some disadvantages: 

Less Security 

Even if the house and lot you bought is in a subdivision, you cannot always ensure that your property is fully secured from outsiders. This is because houses in a subdivision are too spread out to be offered the same amount of security. 

Limited Amenities 

You're lucky if you find a subdivision that offers a variety of amenities, such as a clubhouse, swimming pool, and playground without charging you expensive fees. Most of the time, subdivisions that have affordable houses don't have complete amenities. 

Cost of Repair and Maintenance 

You have total control over your property if you invest in a house. Although you may consider this a benefit, this also means that you are fully responsible for its upkeep. You need to shell out a significant amount of money for repairs and maintenance, which can pile up over time. 

Higher Utility Bills 

Having a bigger space means that you'll also be consuming more electricity and water. This often leads to higher utility bills, which can put a strain on your finances if not managed properly. 

Pros of Investing in a Condo Unit 

Now that you've learned about the pros and cons of investing in a house, let's discuss the pros of buying a condo unit: 

Comprehensive Association Fees 

When you invest in a condo unit, you'll be required by your condominium developer to pay association fees. Although this is an expense that you won't have if you invest in a house, it will completely cover any external renovations and maintenance that may be necessary. All you need to think about is managing the interior of your unit. 

Wide Range of Amenities and Facilities 

Unlike subdivisions, almost all condominiums offer a variety of amenities you can enjoy. When you invest in a condo unit, you can enjoy several premium amenities, such as a pool, gym, playground, function hall, and lounge area. 

Strategic Location 

One of the reasons most investors choose condo units is they are located in strategic locations. Condominiums are often built near malls, groceries, and transportation hubs, making it easy for you to grab your needs or go to various places. 

Better Security 

Condominiums have higher security than subdivisions. Almost every condominium you will find offers 24-hour security and fully functional CCTV cameras on every floor. You will also feel safe in your condo unit because it is equipped with smoke detectors and fire sprinklers. 

Cons of Investing in a Condo Unit 

Investing and living in a condo, no matter how perfect it may seem, also has some disadvantages that you need to be aware of: 

Less Control Over Your Space 

When you invest in a condo unit, the developer will still have some control over how you modify or renovate your space. You need to follow the guidelines set by the condominium association to avoid any conflict. 

Busy Location 

Because most condominiums are located at the heart of the city, it can be quite noisy and busy. This means that the moment you step out of your condo building, you will be greeted by the hustle and bustle of city life. However, condominiums offer lounge or garden areas where you can relax and take a break from the busy city life without traveling far. 

Limited Space 

Condo units are often smaller than houses. This can be a problem, especially if you have a growing family or if you frequently entertain guests. You also don't have your private outdoor space. Instead, you only have access to common areas with other condo residents. 

Expensive Condo Fees 

Investing in a condo can be more expensive than choosing a house over time. This is because of the monthly association dues you need to pay, even after you've paid for the condo unit. However, this cost covers the maintenance and repair of your condo building, which can be a significant advantage. 

Invest in the Real Estate Property for You 

Now that you know the pros and cons of investing in both a house and a condo, it's time to decide which is the right investment for you. Consider your needs, budget, and preferences to make the best decision for your future. 

If you decide that investing in a condo is the right move for you, reach out to us at Ortigas Land. We offer condo units at the heart of Metro Manila that are perfect for investors and families alike. Invest in one of our condo units today! 

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