PRO-FRIENDS: Investing in Housing Development VS Investing in Condominium Development

No matter how you look at it, investing in a home is wiser than investing in a condominium. If you are the developer, of course it would be gainful for you to develop a condominium. But if you are a buyer, it would be better to purchase your own home.

Purchasing a home allows you to live on a property that is solely yours. The house and the land it is standing on will be entitled to you as stated in the deed or title. Plus, land does not depreciate. Its value grows over time.

Unlike a house or townhouse that entitles a buyer to Transfer Certificate of Title (TCT), a condo space will give you a Condominium Certificate of Title (CCT) but the whole building is not yours. The title only declares that you own that space. Take note of “space”, not “land”. TCT on the other hand entitles you both inside and outside of the house/townhouse up to the overall lot’s boundaries.

Now, some developers are considering this and offers shared ownership of the condominium’s common areas and the entire land that the condominium project stands on is owned in common by all the homeowners. That’s good but like mentioned earlier, only “some” developers offer that so be sure to check the contract and master deed thoroughly and ask the right questions when talking to the agent or developer.

You will also be entitled to pay association dues like when buying a home in a private village so it really would be best to invest in a house. Moreover, a condo space depreciates over time especially if the space becomes old or unkempt and if the building becomes old and unkempt as well.

They say that a building’s life is 50 years only. Actually, that is just estimation. It really depends on the durability of the building. The building will only be demolished when owners vote to either sell the land and the scrap from the demolished building, deduct the cost of demolition and divide the net proceeds among the owners, OR

strike a deal with the original developer or another developer to build a new condominium on their land. But until such time that the new project is completed, the owners will have to live in a temporary home which may take 2 to 4 years (source: pinoydreamhousetoday.com)

Such a floating property won’t be a good thing to give future generations as inheritance as well. It’s something but it’s not purely consistent and tangible. It can be quite a handful, too, for them.

Also, so many condo spaces are priced at the same value of houses or townhouses. Why purchase such a limited living space with a price tag that has the same price tag as a house and land? Weigh the pros and cons for you before purchasing a condo unit.

If you have made your decision and finally plan to purchase a home instead, then contact PROFRIENDS (Property Company of Friends Inc). Affordable and quality housing are offered in various locations. Visit profriends.com today!