Phillipine Condominium by Robinsons Land Corporation

Why should you invest in a condominium

11/24/2017

If you’re thinking about buying a new home, a condo can be a smart choice. Often, they are cheaper than single-family homes, and they may offer conveniences – such as swimming pools and fitness centers – that you couldn’t otherwise afford.
If you are buying real estate to establish your home, your parameters should be more focused on what is most convenient for yourself and your family. As a home, it should not be looked at as a financial investment. Rather, it should be considered as a life goal. However, if you just want to invest, please make sure that you have carefully analyzed a real estate investment versus other investment options based on your personal financial plan.
If you definitely want to just invest in real estate, choosing between a condominium and a house and lot would use the same parameters in analyzing its financial viability. Here are some of them.
1. location which includes convenience and attractiveness of neighborhood and security.
2. reputation for quality of development of the builder (this is particularly true for condominiums which are high-rise)
3. rules of the association governing the neighborhood and costs in relation to this association
4. your ability to maintain all amortization and maintenance (association, repair, taxes) payments.
If you intend to rent out your condominium, you need to project your income and costs and assume that there will be times when the unit will be vacant and will need repair. Rental rates normally over around 5% of the market value of the condo unit provided rental income is constant throughout the 12 months in a year. Vacancy rates therefore have a very strong impact on the effective return on the rental property. In considering buying a condo unit for rental purposes, you must assume at least a 20% vacancy rate over the life of the property.
The condominium requires you to live in closer proximity to others and that could be difficult. At the same time, it gives you better security because you can leave your unit and it will be more secure (if it is a good condominium, of course). It is all a matter of personal preference. There will always be a group that will prefer an individual house and a group that will prefer a condominium.
Many who have cash to invest like to buy condominiums that they will have their children inherit eventually. In the meantime, they believe that the condominium will bring them some income in the meantime plus even increase in value. However, as children grow older, more and newer condominiums will be built. Your choice may not be your children’s choice.

Here’s a rundown on some of the top reasons to buy a condo.
Amenities: Condominium developments often provide access to certain amenities that wouldn’t be practical or affordable for an individual house owner. Clubhouses, swimming pools, fitness facilities, etc and even the actual location
Community: Many developments offer a strong sense of community, especially those that provide a variety of planned social events. Keep in mind, however, that if your development has a relatively high number of units on a rental program, the sense of community can be less pronounced as new people (short-term renters) come and go on a regular basis. If a sense of community is important to you, be sure to find out ahead of time how many units are owner-occupied.
Desirable Location: A condo can be a viable alternative that provides you with the lifestyle you enjoy at a fraction of the cost.
Equity and Tax Advantages: If you’re deciding between renting a property and purchasing a condo, note that ownership presents two financial advantages over renting: the opportunity to build equity and the ability to take advantage of tax deductions for mortgage interest and property taxes. If your monthly mortgage payment would be about the same as rent, it may be financially advantageous to buy instead of rent.
Investment Some buyers will be interested in purchasing a condo as an investment in hope that the price of the unit will appreciate over time and/or to use the home as a source of rental income. Since condos tend to appreciate more slowly than single-family homes, many people who are interested in the unit as an investment will choose to capitalize on its rental potential rather than wait for the unit to go up in value.
If a unit has previously been on the rental program, the seller should be able to provide details regarding its annual rental income, including the number of days per year on average the unit has been rented and the rental fees that have been collected.
The rental income during the high season may pay a whole year's maintenance costs, giving you free use of the property during the rest of the year, as well as some side income.
Maintenance: One of the biggest perks of owning a condo is that the individual owners are not directly responsible for maintenance on the building, common areas or grounds. For many people, this is desirable because it frees up time for other pursuits. For others, it is a well-earned break following many years of home maintenance. In general, your monthly condo fee covers all expenses related to the repair and maintenance of central services, parts of the building (aside from the individual units), grounds and community facilities.
Price: Depending on your market, price may be a deciding factor in choosing a condo over other types of real estate, such as a single-family home. In certain areas, single-family homes may be predominantly larger and more expensive, while condos are smaller (either in terms of square feet and/or the number of bedrooms) and more affordable.
Flexibility: A condo offers a great deal of flexibility – it requires less maintenance than other types of homes and it’s easier to leave vacant while you travel. Condos can also provide more flexibility in terms of finding renters while you’re away.

Inquire now

Email: [email protected]
Contact no. / Viber: +639565267391 or +639752645256

0 Comments

Why should you invest in a condominium

More about Chimes greenhills

Chimes Greenhills Site viewing

more about Axis Residences

Categories