Deciding on what kind of house to live in is one of the major life decisions for the burgis. For many middle class folks, it usually boils down to either living in a condominium or a detached home in a subdivision that stands on its own lot. But which one is better?
Condo Living in the Philippines
On one hand, condos have become extremely popular due to their convenience and location. Developers have put up condos in business districts and along major thoroughfares, making them quite accessible and practical for those living and working in urban areas.
Advantages of Condominiums
Location – Most condominiums are located in urban centers and CBDs. If you’re working in CBDs, this could put you much closer to work and commercial establishments. You can even just walk to get to your office or to malls. This makes you less reliant on transport and you might not even have to buy and maintain a car.
Maintenance-Free Living – One of the primary benefits of condo living is not having to worry about exterior maintenance. The condo association typically takes care of landscaping, snow removal, and repairs to common areas.
Amenities – Many condominium complexes offer amenities that may be prohibitively expensive for an individual homeowner. These can include things like a swimming pool, gym, clubhouse, and security services.
Security – Condominiums often come with added security features like gated entries, reception desk, doormen, and security staff. This can offer peace of mind to residents, knowing there’s an added layer of safety.
Affordability – In many markets, condos can be more affordable than single-family homes. This makes them an attractive option for first-time homebuyers or those looking to downsize. The smaller studio or 1-BR units can still be bought at around P3 to P5 million.
Disadvantages of Condominiums
Association Fees – Condo owners typically pay monthly fees to cover the cost of maintenance and amenities. Over time, these fees can add up, and there’s the potential for them to increase. Special assessments can also be imposed on condo owners, like when the building needs to be repainted or elevators repaired or replaced.
Less Privacy – Given the close proximity to neighbors and shared common areas, there may be less privacy in a condo setting compared to a detached home.
Potential for Noise – Being in close quarters with neighbors means you might hear them more than you’d like, whether it’s through walls, floors, or ceilings.
Limited Control Over Decisions – Condo associations set the rules for the community, which might restrict certain personal choices, such as the color you can paint your front door or the kind of decorations you can put up. Decisions about changes or improvements to the property are made collectively, and you might not always agree with them.
Resale Concerns – Depending on the real estate market, condos can sometimes be harder to sell than single-family homes. Factors like the health of the condo association, the condition of the common areas, and the solvency of the condo’s reserve fund can impact a potential buyer’s decision.
House and Lot Living in the Philippines
On the other hand, buying and living in detached homes still fit into many middle class family’s goals.
Advantages of House and Lots
Flexibility – When buying or building your own house, you have the flexibility in tailoring the home to one’s tastes and needs. You can also pretty much do what you want within your own property line, though some exclusive subdivisions would still have rules and policies to compel you to become a good neighbor in your community.
Privacy – Houses typically offer more privacy than condos or apartments. There’s usually more space between you and your neighbors, and you don’t share walls, ceilings, or floors.
Outdoor Space – Owning a lot means having your own yard, which can be used for gardening, recreation, or simply enjoying the outdoors. This can be especially valuable for families with children or pets. That said, you have to be prepared to shell out more for larger lots.
Potential for Value Appreciation – Over the long term, houses and lots often appreciate in value, particularly if they’re in desirable locations. This appreciation can be beneficial from an investment perspective. Some properties can easily appreciate 2X to 3X their value in even less than 10 years.
Disadvantages of House and Lots
Maintenance – Owners are responsible for all maintenance, repairs, and upkeep, both inside and outside the house. This includes lawn care, roofing, and any other issues that arise, which can be time-consuming and costly.
Higher Costs – Generally, detached houses cost more to build or buy. It’s hard to get a house on a 120-sqm lot within the metro and adjacent areas for less than P10 million these days. Maintenance-wise they can also have higher utility bills and homeowners association (HOA) dues than condos or apartments due to the larger space. There might also be higher property taxes or insurance costs.
Less Security – Without the built-in security features that many condos or gated communities offer, homeowners might need to invest in security systems or services to ensure their safety. Even if you live in a gated community, detached homes are likely to be targeted more by akyat-bahay gangs.
Distance from Destinations – Unlike the immediate community feel of a condo, living in a house and lot can sometimes feel isolating, especially if located in a less dense or more rural area.
Less Access to Amenities – Unlike many condos that come with pools, gyms, and other facilities, homeowners might need to invest in these themselves or travel to access them, which can be less convenient. Only the more upscale subdivisions and developments.
So Which is Better?
It really depends on the lifestyle that you want.
A major consideration for some is proximity and access to work and school. With traffic being a major problem in many urban areas across the Philippines, living in a place that makes commute less of a hassle has become a key factor when deciding where to reside.
Those trying to start families do prefer living in detached homes in subdivisions because of the mindset that the extra space and quieter community are better for kids growing up.
Personally, we’ve experienced both. We do miss living in the condo due to its proximity to offices and malls but we prefer the less cramped and less hectic life in a gated subdivision. That said, owning a house and lot can be a lot of work. Maintenance and wear and tear are real.
So, you can also decide if you’d want to rent or own whether it’s a condo or a house and lot. And before you invest in real estate, better be aware of the various real estate laws in the Philippines. Better consult a property expert or a lawyer before diving in.