House and Lot versus Condo Unit?

Deciding whether to own or invest in a House and Lot or a Condominium Unit heavily relies on your lifestyle, and this is mostly true if you live in the Philippines, where cities are overpopulated but still the working class still feel need to be close to the cities to avoid the usual traffic in their daily commute. However, there will always be those who prefer to live in a House & Lot and there are those who swear by the Condo lifestyle.

I’ve organized below table to help you realize the pros and cons, even the small stuff, of each side before you even commit to one, as some buyers only realize them once they are committed and can no longer back out.

Aside from below table, ask yourselves below questions as well to help you out:
1. Am I a city person or am I a rurban (rural/urban) dweller?
2. Who will use it?
3. Is it for investment or residential purposes?
4. Do you plan to have it rented out or have it as your primary residence?
5. Will you live in it permanently?
6. Do you have kids who are still studying?

If in case you’re saying that you’re thinking of buying a House & Lot of a Condo Unit only as an investment and do not need to consider your lifestyle, well, both are actual investments, and I think you still need to factor in your lifestyle in your decision making process (how can you own a house & lot in the lonely province and visit the property several times if you yourself are a confessed city dweller?). Below table will be of help in your research as well.

Best,
FRUSTRATEDBILLIONAIRE

Factors House and Lot
Pros Cons
Terms
of
Ownership
  • Owning an actual piece of land
  • Can be passed on to your children or grandchildren
  • Exclusive rights to your property
  • You do not have a building administration who can serve as your proxy when paying for Real Estate Taxes
Price
  • Affordable. That’s if you’re thinking of buying a house & lot in the province with no right of way. :)
  • A house is usually more expensive than a condo
  • House & Lot within Metro Manila but outside the central business districts: Single- P1.5M to P3M; Mid and High-priced- P6M to P25M
Location
  • May also have a strategic location, depending on where your house&lot is
  • Might be a long drive to where you study and/or work
Space
  • May already come with your own parking space
  • More versatile. You can pretty much do anything with it like set up a small store, convert a portion as your home office or whatever your needs require of it. less restrictions as compared to living in a condo.
  • You are responsible for the upkeep of your space. This is a problem if your area is huge (but anyway, I’m sure you have a lot of money to hire for upkeep if you have an area that is huge).
Security
  • I hope you have a dog that knows how to bark and CCTV camera. And oh, make sure that you have standby cellphone load and the contact number of the local police station. :)
  • May or may not have security, depending on the location and the neighborhood). Homeowners have sole responsibility on the security of their property and its occupants
  • May be prone to flooding
Privacy
  • More freedom to do what you want in your own house and lot (party, etc.)
  • May or may not have privacy, depending on the location and the neighborhood)
Amenities
and
Convenience
  • Amenities like basketball courts and swimming pools could be available given that you are in a subdivision or neighborhood that comes with its own amenities exclusive for the homeowners’ use
  • No amenities. There are subdivisions, though, that have clubhouse areas
  • Utility bills are generally higher, as houses have more space than condos.
  • You have to set up with the local garbage collection service and mind the collection schedule.
  • You are completely responsible for the maintenance and upkeep of your property
Maintenance,
Repairs, and Renovation
  • A big advantage is that you have total control over the property to remodel or make changes without the consent of others. You also have the advantage of having extra indoor and outdoor space, which is more conductive to accommodating guests, families, children, and pets. Houses also feature more storage space including attics and basements
  • The homeowner is completely responsible for all the maintenance inside and outside of the property
  • You must also consider buying extra tools and equipment for maintenance
Resale
  • Long-term investment
  • Value appreciates over the long run
  • Not easy to re-sell. You may have to look for your own broker and deal with paperworks
Transportation
and
Infrastructure
  • Rapid urbanization outside Metro Manila including development of roads and highways, making nearby provinces easily accessible
  • May be situated in Farview :)

 

 

Factors Condominium
Pros Cons
Terms
of
Ownership
  • More flexible payment options
  • You have to pay for association dues as long as the building is standing or until you resell it. You will have to pay association dues even if you are not using the unit
  • You do not own an actual piece of land
  • The life of a condo is only good for 50 years or until the building is declared unsafe to inhabit by the local engineering office, whichever comes first
  • Too many restrictions
  • Decision making process regarding rules and regulations will be shared between all homeowners, you will have to comply with these rules whether you like them or not. A simple example is if you want to have a pet, if the building administration forbids it then you can’t have one.
Price
  • Very wide price range. Lower-range condominiums are often within the budget of first-time buyers and start-up families.
  • If a condo unit and a house & lot are located in the same prime area, the former is almost always cheaper. Some condo units are even below P1M in prime locations
  • May be too expensive for the size of the unit you are buying.
Location
  • Strategic location: nearby supermarket, mall, theatre, offices, hospital, school
  • Might be situated in an overdeveloped area where there is a lot of noise/pollution/traffic
Space
  • Emmm.. Easier to clean? Since it’s smaller?
  • Most condo units, especially the studio and 1BR units, look like you live in a bird’s cage
  • You have to settle with maximizing your space and you share common areas with other unit owners.
  • You have to separately buy a parking space
Security
  • You have a dedicated security team to watch over you, your visitors, and your property
  • No worries on flooding
  • Security may be too restrictive
  • Structure may collapse in the case of earthquakes
Privacy
  • Absolutely. As long as you’re inside your condo unit
  • Just hope that your mistress makes it to your unit without the security guard noticing. :)
Amenities
and
Convenience
  • Amenities such as swimming pool, gym, tennis and basketball courts and reception area. Some of these amenities are expensive to install in our own homes.
  • Compact so you’ll save on electricity with a smaller space, limited appliances & lighting fixtures
  • You do not have to mind the schedule of the garbage collection service
  • You have to abide by the rules of use of the amenities and you may have to schedule with the building administration when you’ll use such amenties for them to accommodate all unit owners
Maintenance,
Repairs, and Renovation
  • Emmm.. Easier to maintain and repair? Since it’s smaller?
  • Extensions and major renovation of the unit is not allowed as it will affect the structure of the building, or, you’ll have to get approval first from the building administration
Resale
  • Increases in value over time
  • Can be easily sold. Some condos even have their own office which you can contact to have your unit rented/sold
  • Condos can be profitable if you plan to sell or have it rented out (as long as the building is up)
  • The condo sector is usually the first to be hit and the last to recover when the housing market declines
Transportation
and
Infrastructure
  • You are already in a strategic location with good infrastructure.
  • City traffic. Need I say more?

 

FrustratedBillionaire