Pros and Cons of Buying a Condo in the Philippines

Philippine Real Estate: Pros and Cons of Buying a Condo

Philippine real estate is experiencing a high demand for condominiums, which will continue in the upcoming years. Condominiums are not only in demand in Metro Manila but also in nearby provinces with urbanized cities. Because of this, many homeowners are eager to invest in condos without checking the drawbacks.
 
So, in this article, we will discuss the pros and cons of buying a condo in the Philippines and other deciding factors you should consider before investing in a property.

Pros and Cons of Buying a CondoSimilar to other investments, owning a condominium comes with advantages and drawbacks. That’s why it’s essential to understand the pros and cons of purchasing a condo in the Philippines.

Pros

1. More Affordable Compared to House and Lot

One of the top advantages of buying a condo in the Philippines is that it’s more affordable than house and lot properties. It is a cost-effective option for those who wish to reside in prime areas. In the Philippines, middle-income earners can purchase a studio unit below PHP2 million. Hence, many opt to invest in condos.

2. Prime Location

Another reason many choose to invest in a condo is due to its prime location. These residential buildings stood in the most convenient area in the city. Condos are near business districts, shopping malls, supermarkets, restaurants, schools, hospitals, and transportation systems. Thus, professionals and entrepreneurs invest in condos to enjoy accessibility and cut travel time.

3. Equipped with Amenities

Buying a condo unit is also a good choice for those who want to keep their lifestyle active. Condos have various amenities that residents can use, like swimming pools, gyms, and sports facilities (such as basketball, badminton, and tennis courts). Additionally, condos feature lounge areas with concierge services, function halls, and playgrounds.

4. Tighter Security

Compared to subdivisions, condos offer tighter security, making it a good investment choice. Condos come with 24-hour security with roving guards within their premises. In addition, condos come with CCTV cameras, and each unit and all the hallways have smoke detectors and fire sprinklers. That’s why condo residents can leave their units without worries.

5. Less Maintenance

If you want to reduce your maintenance responsibilities, living in a condo unit is for you. Unlike house-and-lot owners, condo residents don't have to worry about maintaining the yard or repairing the roof and gutters. Owning a condo requires less upkeep since residents only have to focus on the interior of their units while the admin handles the rest.

Cons

1. High Fees

Despite its advantages, investing in a condo unit also involves high fees due to the monthly association dues condo residents must pay, ranging from PHP1,000 to PHP8,000. While it covers the maintenance of common areas, these fees may increase over time, and residents must continue paying them even after they pay off the mortgage.

2. Limited Living Space

Before purchasing a condo unit, ensure you can adapt to a smaller living space. The average floor area of a condo unit in the Philippines is less than 50 sqm, while studio-type only measures 18 sqm. Also, be prepared to share outdoor space with other residents.

3. Property Restrictions

Owning a condo also comes with restrictions. Condo owners cannot perform extension projects since it may affect the building’s integrity. Before undertaking interior renovations, owners must seek approval from the property management office. Meanwhile, some condos prohibit pet ownership or limit the number and the type of pets you can own.

4. Lack of Peace and Privacy

Living in a condo is also not ideal for those who value peace and privacy. Since it’s a residential complex, the neighbors on the side, below, and above every unit may cause unavoidable noise. Plus, the continuous foot traffic in hallways may affect residents' privacy, preventing them from leaving their doors open.