Buying a Condo vs House
From Phinvestopedia
Buying a Condo vs a House is a major financial decision that involves more than just choosing a building type; it involves choosing a lifestyle and a specific legal form of ownership.
- House and Lot: You own the structure and the land it stands on. Proof of ownership is the Transfer Certificate of Title (TCT).
- Condominium: You own the unit (airspace) and a share of the common areas, but you do not technically own the land directly. Proof of ownership is the Condominium Certificate of Title (CCT).
Comparison at a Glance
| Feature | Condominium | House and Lot |
|---|---|---|
| Ownership | CCT (Unit only + Share of Common Areas) | TCT (Land + Structure) |
| Foreigners | Allowed (up to 40% of building) | Prohibited (cannot own land) |
| Location | Prime (CBDs, near MRT/LRT) | Suburban (Cavite, Laguna, Rizal, Bulacan) |
| Maintenance | Low (Interior only) | High (Roof, Gutter, Gate, Paint) |
| Monthly Fees | High (Association Dues) | Low (HOA Dues) or None |
| Appreciation | Slower (Building depreciates) | Faster (Land appreciates) |
| Privacy | Low (Shared walls) | High (Gated fences) |
1. The Condominium
Condos are the default choice for young professionals working in BGC, Makati, or Ortigas who prioritize "time" over "space."
Pros
- Proximity: You pay for the privilege of waking up 15 minutes away from your office.
- Amenities: Access to pools, gyms, and function rooms that would cost millions to build in a private house.
- Security: 24/7 roving guards, CCTV, and receptionists make it difficult for intruders to enter.
- Rental Income: Easier to rent out to students or office workers due to location.
Cons
- Association Dues: The "Forever Fee." You pay this monthly (₱50 - ₱100 per sqm) even if you fully paid for the unit. A 30sqm unit can cost ₱3,000/month just in dues.
- The Parking Trap: Parking is often sold separately and can cost ₱1 Million to ₱2 Million per slot.
- Strict Rules: You often cannot have pets, dry clothes on the balcony, or renovate without a permit and a construction bond.
The "50-Year Rule" Myth
A common fear is: *Will my condo be demolished after 50 years?*
- Reality: No. The law says the *Condominium Corporation* has a lifespan of 50 years, but this is renewable.
- Obsolescence: A building is only demolished if it is condemned (unsafe) AND the majority of owners vote to sell the land/demolish it. In that case, you get a share of the proceeds from the land sale.
2. The House and Lot
Houses are the choice for growing families and retirees who prioritize "space" and "legacy."
Pros
- Total Control: You can paint the gate pink, add a second floor, or keep 5 dogs. No admin will stop you.
- Land Value: Structures depreciate (rot), but land appreciates. A house in an improving area (e.g., near a new CALAX exit) can double in value over 10 years.
- Space: For the price of a 24sqm studio in Makati (₱5M), you can buy a 120sqm 3-bedroom house in Cavite.
Cons
- The Commute: Affordable houses are usually 1-2 hours away from Metro Manila. You trade money for travel time.
- Maintenance Headaches: If the roof leaks, you fix it. If termites attack, you pay for it. There is no "Admin" to call.
- Security: unless you live in a high-end subdivision, you are responsible for your own gate and CCTV.
Decision Guide: Which one is for you?
Choose a Condo if:
- You are single or a young couple working long hours in the CBD.
- You do not own a car (condos are transit-oriented).
- You view the property as a rental investment (Airbnb/Dorm).
- You hate dealing with repairs and gardening.
Choose a House if:
- You have children (kids need space to run).
- You work from home (location matters less).
- You have a car and are willing to drive.
- You are buying for "inheritance" (passing land to kids is generally better than passing an old condo unit).
How to Be Prepared (The Checklist)
- 1. Financial Readiness
- * Reservation Fee: Usually ₱20,000 to ₱50,000 (Non-refundable).
- * Down Payment (DP): Usually 15-20% of the price. For "Pre-selling," this can be split over 24-48 months. For "RFO" (Ready for Occupancy), this is often "Spot Cash."
- * Closing Costs: Prepare an extra 5-6% of the price for Transfer Tax, Doc Stamps, and Notarial Fees.
- 2. Developer Reputation
- * Check the track record. Does the developer deliver on time? (e.g., DMCI is known for resort-types, Ayala for premium, SMDC for malls).
- * Check "Turnover quality" on forums/social media. Are the walls thin? Do the elevators break often?
- 3. Title Check (For Houses)
- * If buying a second-hand house, request a "Certified True Copy" of the TCT from the Registry of Deeds to ensure it is not mortgaged.
