Ask A Question — Condo or House and Lot?

[Left Photo] Studio City at Filinvest Alabang, one of the top investment properties of Filinvest. [Right Photo] Sandia Homes in Tanauan Batangas, one of the fastest selling house and lot projects of Filinvest Futura brand.

Do you find yourself in a predicament of whether to buy a house and lot or a condominium unit? Well, you are not alone. The same question was asked to me by our sender Sherilyn Lugait, an OFW from Saudi Arabia.

“ Hello Pinoy Dream Builder. Nakaipon na po ako konti after 2 years of working here in KSA. Gusto ko sana mag invest sa property pero naguguluhan ako kung ano ba ang mas ok, house and lot ba or condo. Ano po sa tinging nyo? Thank you”

ANS:

Hi Sherilyn,

Your question seems so simple, but it is actually a complicated one. In fact, i had to pause for few moments and think to make sure i can give you the most direct, easy to understand propositions. Let me introduce you to your two selves:

  1. I am Sherilyn, I’ve been working for 2 years and i want to buy a property for my family so finally we can have our own home.
  2. I am Sherilyn, I’ve been working for 2 years and i want that my money will not only be secured but can grow more.

If you are Sherilyn №1, it is more ideal to buy a house and lot. If you are Sherilyn №2, buying a condo for investment is a wise decision. I can enumerate to you the advantages and disadvantages of both (which you can research and learn as part of your buying process), or present to you a table of comparison between a house and lot and condo but it all boils down to your PURPOSE of buying.

Of course both can be homes for your family. The same way that both are good investments as well. There are just trade-offs that you need to understand.

For example, house and lot in prime locations are becoming so expensive and assuming that budget is a major consideration to you, you will have to compromise location a little bit and opt to buy somewhere farther from the main cities but at a more affordable price. However, you can also get lucky and may enjoy more spaces for you and your growing family. Though appreciation value is not as high compared to those located in the city, it still appreciates at a rate higher than other investments available out there. You can also rent it out if you wish to at some point, except that rental and income potential is not as high than those located near central business districts. Remember though that your purpose in this case is to buy a home for your family so all the other things are just secondary benefits.

On the other hand, buying a condo can definitely give you an upper hand in terms of investment yield. It’s as basic as asking, where do working people want to live? And the answers are, where it’s close to where they work, where it’s more accessible to transportation, where it’s close to other locators that will make life more convenient, where amenities are better for personal enjoyment…and the list can go on. Condos are built to address these demands and so their rentability is higher than that of a house and lot. Not to mention that since it is mostly located in prime areas, appreciation value is also higher which is good for you over time. Again, condo can also be a place for your family. It might not be as spacious, but it should be convenient enough to be called home.

I hope i am able to answer your question, Sherilyn. One thing is for sure, either you are going to buy a house and lot or a condo, YOU DESERVE IT BECAUSE YOU WORK HARD FOR IT!

For those who also have questions on real estate investments, you may click this link to write me: http://bit.ly/2xJlfeS