Which one to invest in, condominium or house and lot?

Which one to invest in, condominium or house and lot?

The dilemma confronting home-buyers in the Philippines nowadays is not so much the price (although that is still an important consideration), but the type. Traditionally, owning a home meant a house and lot, no matter how small. Today, it is a very difficult choice between a unit in a condominium building and stand-alone property.

You can blame the economic boom and the construction frenzy going on in the Philippines for all the agonizing indecision going on in your head right now. Land values are going up, true, but real estate developers are competing fiercely for the custom of a more affluent population, so they are making it very easy to make a down payment and stretch the amortization for the balance for as long as 30 years. This applies for both condominium and house and lot choices. So what to do, what to do?

Own use

The first thing you need to consider is what you plan to do with it. If you plan to live in it, then you have to consider your lifestyle, at least for the next five years. Are you currently single and eager to live it up? A condominium where you hardly stay in the middle of the city (which is where most condominiums are) would be perfect for you. Do you have a family, or planning to have one? Do you have pets? If you do, or you have, then a house and lot with a yard and more control may be more up your alley.


On the other hand, if you are looking for property to invest in, and plan to rent it out, then you have to consider the lifestyle of your target tenant. Are you planning to cash in on the huge demand from BPO employees looking for a secure place to stay near work? A condo near or actually on the same building as a call center would be perfect. Are you targeting families looking for a nice place for their kids to grow up, but not willing or able to buy their own homes? A house and lot near schools and public transportation would be what they will need.


In other words, choosing a condominium or a house and lot for your personal use or investment depends on the lifestyle you seek. As a rule of thumb, a condominium is ideal for the single professional or married couple with no kids or pets. It is also a good decision for seniors with grown up children because it is usually near malls. It is generally safe and secure because most condominiums have their own security. In addition, most condominiums will have a gym, swimming pool, and other amenities that make it very attractive to both populations.

Stand-alone properties are more suitable for families with growing children and pets. They have more space both inside and outside the home, and the freedom to make as much noise as they want, which is not possible in a condo. You can also expand a house to accommodate a growing family, and make as many changes as you wish without having to worry about conforming to building rules. It is as safe and secure as the neighborhood you choose, so if you are worried about that, get property in a gated community or a subdivision.

Both types of properties are good investments. The ideal choice for you depends on your lifestyle or the lifestyle of your future tenant.



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