Pros and Cons of a Condominium


Condominium communities are becoming popular nowadays especially in places where there is a surge of development like business districts. You can see a lot of high-rise condos. The trend now is going vertically and not so much horizontally in land development because land is becoming scarce in developed places.

Condominiums are once the realm of singles but many retirees and empty nesters have struck gold in their golden years by settling in condominium communities. If you were to choose, which one will you prefer: a home in a condominium or subdivision?

Let’s view some of the pros and cons of a condo:

Pros:

Convenience. A lot of people invest in a condo because of its location. It may be near their work or in shopping malls. Because of it, condos provide convenience. You don’t have to wake up early in the morning to go to work because it may be near your work place or you can save up on transportation costs in going to your work.

Amenities. A lot of condos have their own set of amenities. It may be a swimming pool, gym, hot tub, tennis court, sometimes even a golf course. Although some of residential subdivisions have these amenities as well, condo owners in general usually enjoy a lot of amenities than village homeowners.

Someone else does the work. As a condo unit owner, you are part of the management of the whole condo building. The management hires groundskeepers and maintenance crews for you if you need some repairs and maintenance. No more fixing your own roof, trimming the hedges, or cleaning the pool.

Security. Condo offers many protections in terms of security. The condo management, aside from hiring security guards, oftentimes, installs security cameras in different locations within the whole condo building.

No flood. Unlike in subdivisions where there is sometimes a flood every time there is a heavy downpour, condos are rarely, if not totally, being affected by floods. This is of course due to their high-rise in nature.

Cons:

No Lot. In a residential village, you are buying house and lot. In a condo, you are just buying the condo itself and not the lot. This is one of the main issues if you are to choose between a home in a condo as against a home in a residential subdivision. What happens then if the whole building collapse or gets into fire? I do think that condo unit owners have their own share of the insurance for the condo building.

High Condo Fees: Of course, the amenities provided above have corresponding condo fees. The higher the number of amenities provided by these condos, the higher the fees you need to pay for the condo fees. So be sure to maximize the use of these amenities if you are in a condo.

So if you were to choose, which one would you prefer? Is it a home in a condo unit or a home in a residential subdivision? In answering this question, it is very important to understand yourself – your needs, and of course your budget.

Personally, I would still choose the traditional home in a residential subdivision simply because it is ideal for persons planning to have their own families in the future.

To get articles, you can subscribe using your favorite RSS feed reader or have them delivered directly to your email address.


Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

12 responses on “Pros and Cons of a Condominium

  1. But if your just starting out and earning a good amount of money, condo is one good form of investment, is it not? if youre ready for a family, you could always transfer to a house inside a subdivision or village and earn some somes from the unit.

    great post.

    cheers,
    jayl

  2. Yes, you’re right Jayl. That’s the advantage if you have a lot of money to spare with. Condo is a good way to earn passive income by renting it out to tenants.

  3. security wise… it’s advantage and disadvantage…. many break in happened despite having security guards. sometimes these guards sleep while working …

    and in condo, neighbours don’t know each other … and they don’t give compassion if ur unit got break in. they don’t even bother to know each other.. there’s no warmth.

  4. Being a young person, condo would be my choice because I don’t need a big house and the things that go with it. If I ever get married and have kids than I would prefer a house over a condo.

  5. but it’s better to get a condo unit than to just rent an apartment just like what i am doing now. at least in a condo, you’re paying the condo for you to own that unit. while i am paying the apartment owner monthly without hopes of owning it.

  6. Sel, there are also rent-to-own apartments. It depends on the terms with the owner. I do think that some of those who do business with foreclosed properties have rent-to-own schemes with their acquired foreclosed apartments.

  7. Renting out a condo is a good source of passive income, though I’m not sure how much you’ll earn eventually. If you plan to rent out a condo for 120K a year, how much would you take home considering the deductions such as realty tax, income tax(since your renting out?), broker’s cut?

  8. Marlon, that would be dependent on factors such as the location, floor area, etc. of the condo since the realty tax is dependent on these factors.

    For broker’s cut, it’s only given to 3rd party brokers who found tenants to the condo. If you want to minimize costs, then you should directly be the one to find tenants by marketing the condo, perhaps in the internet or other means.

  9. Hi ,
    Pls advise on re-sale of a new condo development and the taxes foreigner has to pay , if any .
    Is there a min holding period before a new condo development unit can be re-sold ?
    Can i sell to anyone or only to a foreigner only ?
    Any property gain taxes for foreigner investors ?
    Also any info that may help foreigners evaluate the prospect of investing Philippines .
    Many Thanks
    eric – Singapore

  10. One con you forgot but doesn’t apply to all condominiums is volume of people in the building. Your condo might be too congested which can lead to slow movement in elevators, a lot of people in the facilities, and noise along the corridors in your floor.

  11. Great fair thoughts of you! For me, if you are single then a condo is a good choice but if you’re already married and have kids, then a house is a better option. I am living in a condo because aside from its great amnesties, it is also near in public entertainments, malls and banks.

Leave a Reply

Your email address will not be published. Required fields are marked *

1 + 15 =