Investing in a condominium is an investment that would require both financial and non-financial commitment. Condos can allow you to own a property in a prime location where it might be difficult to almost impossible to own a landed property especially when you are looking at urban centers where condominiums usually flock.
This is especially true for the Philippines where condos tend to flock in township projects and pocket developments where property values are very high, and house and lot properties are usually not part of the masterplan as developers would like to build vertically due to limited land.
If you find yourself interesting in investing in a condo in the Philippines, here are 5 things that you should keep in mind:
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The first consideration that you should have when choosing a condo is the location.Variation in prices largely depends on the demand that a city commands. A condo in Mandaluyong City would be relatively cheaper than those in Makati City.
Further, there would be variation whether a project is located near places of work, especially when looking at key business districts such as Makati CBD, Bonifacio Global City, and Ortigas Center among others. Condominium projects located inside these urban centers command a higher price, but they also command greater demand should you decide to open up your unit for rent.
The developer says a lot about what you can expect from the condominium project you are investing in. Typically, property developers have signature design standards which can be seen across their projects. Larger developers would even have subsidiaries that represent different market segments and different price points.
While there are a number of great boutique developers or less-known property developers, it is still safer to check out condominium projects from trusted developers. This is especially true when looking at investing in a condo project during the pre-selling phase where there is a lot of risk as to how the project would turn out and as to how long the project would actually take to complete.
Finally, property developers are usually consistent with their rules such as whether pets are allowed in their condo, so choose one that fits your lifestyle.
Condos come in different layouts, ranging from a small studio to a family-friendly unit with a number of rooms. Aside from that, the unit sizes also differ across condo projects so choose which one offers enough space for you.
While amenities such as pools, gardens, playgrounds, and function rooms are common in condominium projects, some developers take it up a notch and offer more amenities such as a basketball court and a gym.
Further, there are other in-building support facilities that are very helpful for occupants such as laundry service and a convenience store or a small grocery shop. There are condos in the Philippines built with a shopping mall component on the lower floors and this can help those who would want everything they need in just one place.
5. Pricing and Financing
After all the reasons enumerated in the previous items, you are left with among the biggest considerations when choosing a condo: the price. The location, as well as the various product offerings that come along with the property can spell the difference in pricing in condo projects. The key is to find a mix of these factors that lead to a price that works for you. Buying a condo is a huge commitment so you would want to be smart about this. You wouldn’t want to go overboard if you cannot afford the financial implications of your choice of condos.
To help you out, check out the financing options that are available for you. You would definitely need some equity in order to buy a condo in the Philippines, then you can finance the rest through a bank loan, or through a project’s in-house financing. The latter is traditionally easier to apply for, but comes with a higher interest rate.
Finally, getting a property at its pre-selling phase may take longer before you can actually enjoy your investment, but it would help you save a lot more as pre-selling projects come with significant discounts as compared to the price when the project is completed.