Buying a condominium this 2023? What exactly are you looking for when considering the many property choices available here in the Philippines? Yes, you heard it right. The Philippine construction industry is in full recovery mode after two previous years of slowdowns. Projects put on temporary hold during the pandemic are now back in full swing and scheduled for turnover in a year or so. Meanwhile, new developments are sprouting left and right in anticipation of renewed demand. The result is a buyer’s market of condominium choices ranging from affordable starter units to ultra-exclusive penthouses in posh locations.
Whatever your preferences may be, there are some considerations that you should always place above everything else. Below are the top five factors you should consider before making that final decision on your planned condo purchase.
The cardinal rule of real estate should always remain the foremost consideration when buying a condominium or any other property. For those asking, location determines the owner’s proximity to the business, commercial, and recreational centers they need. As the majority have the same requirements, this makes the condo that’s nearest to these centers the most attractive.
Before following the herd, however, consider your own requirements. Would you like to live near your place of work? Or, would you rather live somewhere that’s accessible to major shopping malls, entertainment centers, and other lifestyle attractions? Conversely, you might prefer places that are off the beaten path. As long as standard utilities such as water, electricity, and internet access are available, buying a condominium in far-off locations such as resort spots remains a good investment.
2. Price and Recurring Costs
We’d be amiss if we didn’t include the property price as a major consideration. Your budget should always dictate your ultimate decision. Buying a condominium located in the city center will definitely cost a lot more than a unit located at the city’s fringes. When weighing your options, don’t be afraid to undertake a little price comparison shopping. You’d be surprised how that can help you get the most bang for your buck.
Apart from the unit cost, you might also want to consider the monthly costs associated with the upkeep of the entire condo. Condominium associations usually collect monthly fees to cover the costs of building amenities and equipment repair and maintenance. The dues also pay for monthly staff salaries as well as other contracted work. Always ask your sales agent how much the monthly association dues cost and work out the math in your head before closing the deal.
3. Developer Reputation
Prospective owners often spot their perfect condo in terms of location and price and hurriedly sign up thinking they’re making a great deal. Usually, this pans out well and everybody’s happy with the transaction. In some cases, however, the property developer suddenly announces that they can’t afford to continue the project anymore. The best-case scenario is to turn over your unit. The worst case? You end up paying for something that never made it to the scheduled turnover. Litigation could help recover your costs, but good luck getting it soonest.
This is why it’s important to check a developer’s reputation first. The country’s prominent developers can guarantee project completion save for very extreme situations. So, buying a condominium unit from them is a safe investment. Conversely, dealing with a less-than-reputable developer might save you a few hundred thousand pesos, but the guarantee of getting your unit on turnover remains a big if. In some cases, you might not get what you paid for exactly, such as undelivered amenities or substandard construction.
We’re talking condo living here, so amenities should play a major role among your items for consideration. Sure, everybody could use a gym every now and then, but do you really require separate indoor and outdoor gyms, a squash court, or Olympic-sized pools? If the answer is yes, then it’s all good. If not, you might be better off for something less imposing. Many developments will promise a plethora of amenities, but always remember that each amenity will be part of what you’re paying for – whether in unit cost or monthly dues.
One amenity that buyers should always look for is security. 24/7 security presence, safety alarms, CCTV coverage of major areas and walkways, and gated access should always be standard features in any condo purchase. If your real estate agent offers anything less, be prepared to walk away. Safety and security should always be a given.
5. Unit Size
Ultimately, the condo unit you choose should be enough for your needs. Paying top dollar for a studio in a chic location is okay if you’re after the location. But what if you’re sharing the unit with your spouse and children? While budget can play a prominent role in your decision, don’t make the mistake of scrimping for the sake of getting a unit.
Folks buying a condominium as a halfway house where they stay during the workweek might find a studio unit as the perfect size. Those with housemates, or who require separate spaces for sleeping, eating, or working might find better accommodations in a one or two-bedroom unit. Remember, you alone determine your space requirements. Don’t let location or price alone deprive you of the living space you deserve.
Bonus tip: For investors, check possible capital appreciation
If you are looking for a condo that is not for end users, check the capital appreciation which is easily computed through historical data. Dig up former contract prices of the same or even similar developments and subtract these from the current prices. Voila, you have a capital appreciation, Capital Appreciation = Current Value – Purchase Price. Capital appreciation means the increase in the market value of assets compared to their purchase value within a stipulated period, in this case, a good measurement is a 5-year term.
Are You Buying a Condominium in 2023? Let Ohmyhome Help You Find the Perfect Unit
Looking for the perfect condominium that meets your specific needs? Visit us at Ohmyhome Philippines. Our customer service team will be more than happy to talk to you and help you find the perfect condo unit that fits your budget, lifestyle, and needs. At the same time, we can also set you up with our team of professionally licensed agents. They’ll give you the best deals and terms for the condo units you deserve!