Majority of the people is not well informed on the benefits of owning or investing in Condominiums. Some might presume that without a land title, the condo unit will be gone after 50 years. This misconception lead them away to the fact that Condominium as a form of investment is a great option versus purchasing a single detached unit(typical House and Lot) which is commonly situated away from the city proper.
Condominium living a better choice...
“Condo units are real estate and are an asset class. Real estate remainsone of the most preferred investments of Filipinos. It will always be agood part of your investment portfolio because it gives the investorpeace of mind and it is a simplified asset preservation tool.”Is investing in a condo unit a good idea?By Randell TiongsonPhilippine Daily InquirerBy: Kenneth Xavier R. CalpoSales and Marketing Supervisor
introduction Majority of the people is not well informed onthe benefits of owning or investing inCondominiums. Some might presume thatwithout a land title, the condo unit will begone after 50 years.This misconception leadthem away to the fact that Condominium as aform of investment is a great option versuspurchasing a single detached unit(typicalHouse and Lot) which is commonly situatedaway from the city proper…..
I. As an investment…“the law of momentum is at work in developing real estate, andtherefore, if you see the presence of three or more developers in onearea, then there is a higher chance of price appreciation.Your typical price appreciation for a condo today in the Philippines isroughly 7-8% annually, and that is a very conservative estimate. Bythe time the unit is turned over to you, you would roughly have a 30-40% price increase in your property.Thus in a span of four to five years,you can actually net a significant profit, and let another buyerassume the balance (in case you opted in for bank financing to pay foryour unit).”http://condominium.hubpages.com/hub/Why-invest-in-condominiums
Condo units are tangibleinvestments…If you compare owning real estate to other investment instruments, we can agree thatreal estate satisfies a human need—the need for shelter. Stocks, bonds, and theaccumulation of cash for bank savings mean only that you own a certain amount orvalue that is only based on the value prescribed by the financial market.You cannotactually “use” in the strictest sense or satisfy your human needs, using these investmentneeds. On the other hand, gold, precious metals and gems, and antiques andcollectibles are certainly tangible and in certain respects can be used—to decorate yourhome, or your human faculties. But these tangible investments are as useless as “paper”investments when it comes to satisfying human needs compared to real estate.It comes to no surprise that owning real estate has been traditionally a means foraccumulating more wealth, and several of the Forbes 400 billionaires founded theirbusiness empires on real estate. Here in the Philippines, the most prominentbillionaires all have a huge stake in real estate here in the country.Thus, owning thisinvestment instrument is a tried and tested means of accumulating wealth.http://condominium.hubpages.com/hub/Why-invest-in-condominiums
“Buy preselling units”I would suggest especially for starting families and investors tochoose good developers to buy pre-selling units simply becausethey are more affordable monthly. Pre-selling units mean that thereare options to defer the downpayment during the pre-sellingperiod, which could mean that even the cash strapped buyer couldput money on a studio unit. Lower prices mean your monthlyamortization is much more affordable than a RFO unit.http://condominium.hubpages.com/hub/Buying-Pre-Selling-Condo-Units-vs-RFO
II. As a home for you..a. SAFETY AND SECURITYb. Recreation Center & More Quality Time.c. Minimal Housekeeping and MaintenanceEffortd. Strategic & Prime Location.e. Value for Money LifestyleAlternatives
a. SAFETY AND SECURITYTYPICAL HOUSE AND LOT CONDOMINIUM UNITS Security guard cost 10k/mo Fire and calamity insuranceat your own expense No advance fire safetyfeatures CCTV at your ownexpense. 24/7 security guards fire & calamity insurancecovered. with advance fire andearthquake safety features(earthquakeresistance,sprinklersystems,fire alarms and fireextinguishers. CCTV cameras strategicallylocated.
b.RECREATIONAL FACILITIESTYPICAL HOUSE AND LOT CONDOMINIUM UNITS Swimming pools areexpensive fitnesscenters(gym/spa),playgrounds,clubhouse etc.. Areavailable only in high classsubdivisions. With swimming pools with Fitnesscenters,playground,businesscenters,convenience storesand other amenities withinthe building.
c. Minimal Housekeeping and MaintenanceEffortFor those who travel a lot and most of the timeare out-of-town, condominiums can be anexcellent option. If you have to travel for work,you know the problems that can arise fromhaving a home setting empty for weeks ormonths. Burglaries, graffiti and so on arecommon results of leaving a home empty. Withcondominiums, it is much harder for someoneto tell if a person is home or not.This makescondominiums very popular with Balikbayansand certain inter-island business people.
d. Strategic & Prime Location.Condominiums are often found in locationswhere land ownership would not beeconomically feasible due to its high cost, andconsequently a condominium project would bethe very viable option for development. Someexamples might include prime commercial-business district locations, waterfrontlocations, and other locations in very closeproximity to leisure amenities
e.Value for Money Lifestyle AlternativesHerein the Philippines, despite the relativelyhigher cost of condo unit’s compared to detachedhouses,Condominium Living remains attractive tomany. ESPECIALLY that Condominiums are notjust Livable, Comfortable and Enjoyable units butalso a Smart Investment.This unique residentialcomplex offers you a wide variety of benefits… theownership of a residence and a lifestyle that’s cost-effective and rewarding!