In a perfect world where resources and cash are not of greater concern, choosing which property to invest in is not a problem. But since economics explicitly states that the human resources – no matter how vast they are – are still finite. And this fact made management of resources a great feat for all of us.
As an individual, dealing with resources and accumulated wealth means perfectly handpicking the right investment, especially with those assets that increase in value over time. And the usual go-to investments are real estate properties.
With tons of residential developments happening left and right, the question that usually starts a great deal of consideration with investors or buyers is: which real-estate property should I buy?
And the usual follow up question is: Should I go for a house & lot or a condominium unit?
This could be a very challenging phase that buyers need to go through, especially for the first-time buyers. To help you weigh the options, caveats and some considerations here’s a rundown of what you need to evaluate should you decide to go with either of the two.
- Location
In terms of location, condominiums are great deals in this segment. Condominiums – as part of their strategy – is owning a space or a piece of property in a location where the cost of acquisition is unbelievably high due to its proximity with all important hubs. Condominium location is a prime location in a specific city which is usually a kilometer (or less) away from the shopping areas/malls, churches, marketplaces, restaurants, and schools – not to mention the access to major public transport.
There are also houses and lots who are built in prime locations. However, you need to prepare your passbook or get in touch with your bank housing loans for this.
- Space
Owning a property means you are considering a decent lot or floor area to live in. If space is your non-negotiable and you have quite a large number in the family, then a house should be your first choice. Owning one gives you exclusive rights to your property. You may expand it any way you want.
Unlike owning a house, getting a condo unit means you need to be able to maximize its space because modifications are limited. Also, there are communal areas that you need to share with other unit owners or tenants.
- Amenities
Owning a house with full amenities is expensive. And with “expensive”, it means it really is expensive. However, you can also have access with amenities such as pools and events place or clubhouses if you are living in exclusive subdivisions and villages.
Owning a condominium unit is pretty much the same in this case since it gives you access to all amenities such a pool, gym, covered courts and events area, etc. Though is it shared by all tenants and owners, having an access to all of these is a good deal.
- Price
It is obvious that a house costs way more than a condo unit within the same neighborhood to full control and ownership. However, condominiums are flexible in terms of price. Lower-range condominiums are often within the budget of first-time buyers and start-up families. You can buy affordable house and lot, but in a different, less desirable location or neighborhood.
- Privacy and Security
Condominiums by default are secured residences because some of the monthly dues owners pay for go to security. Living in a condo unit somehow gives you a peace of mind due to security.
You can also implement security in your house, but this entails a great cost. Also, the need for getting your own security depends on your location and neighborhood.
- Resale
If you are looking for a long-term investment, house and lot is a good option. In terms of resale value, condominiums are more sensitive to resales as compared to houses. When the housing and real-estate market is hit by external factors that shake its stability and profitability, the condominium sector is usually the first to be hit and the last to recover. Not to mention the factor of building integrity. A building has an average year of integrity of 50 years, and that affects the resale value.
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Carefully deciding on which kind of residential property to buy is a tough job, most especially for first-timers. Your hard-earned money is at stake here, and making the right judgment really makes a difference. Owning a property nowadays is an appropriate form of wealth management for starters than just letting your savings and spare cash sleep in the bank.
If you are seeking an expert’s advice on property valuation or acquisition, you can rely on Aviso Valuation and Advisory expertise to make sure you’re doing it right.
