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June 22, 2010

Why Is There A Demand For Condominiums?

Before anything else, let me tell you what a condominium is. Condominium is a form of housing tenure in which in a building, each unit is owned by an individual but the grounds, structure, amenities and other common areas are owned jointly among the unit owners. 

Condominiums are evidently becoming the most popular type of housing in the Philippines. Though it was not long ago that this type of housing was introduced in the local real estate market, the demand rapidly grew larger. I’m sure you want to know why…So here are the reasons why:

  • Owning a condo is an affordable way to own a property on a prime land. This simply means the developers usually build their projects on locations that are very accessible and near to commercial areas in the city. And the cost of owning a house and lot on a location like this is very pricey compared to owning a condo unit. Just be sure that you’re investing in a condo with a freehold ownership. (I will cover this topic on my next post)
  • Developers like DMCI build Condos with resort-style amenities like swimming pools, club house, function rooms, pocket parks, jogging paths, fitness gym etc. and an ambiance that is truly homey. You need to be very rich if you want these same amenities for your single detached home.
  • Condo projects are usually located near business districts and commercial areas which provide convenience in terms of travel time to and from work, school or shopping, giving you more quality time to spend with your loved ones.
  • When you own a condo, you only need to worry about maintaining the insides of your unit. The maintenance of the building and its amenities are managed by the property managers or the condominium association with your participation through the association dues or condominium fees.
  • It is very secure to live in a condo because it is a common feature on most projects that the entrance to the site is adequately guarded, roving security is always on duty and the site is surrounded by a perimeter fence which in the case of DMCI is equipped with high voltage wires.   
  • Condominium is also a lucrative investment because of its good location.  You can buy it on installment, rent it out for a certain amount, pay the amortization through rental income and earn passive income with the difference. Many real estate investors are into this type of business.
So there you have it. Bottom line is, it’s all about “Practicality” Because as we all know, population continues to increase but land area remains the same. The demand for land continues to grow while the supply is limited. An engineer friend of mine told me that many people still prefer living in single detached homes because of pride of ownership. And I said, that’s fine, but most of the affordable subdivision projects are located quite far away from the business districts and commercial areas where most of us work and that coupled with unpredictable traffic means more time away from your family. Would you still choose pride of ownership over practicality? I bet you will choose the latter. 

Now you know why the demand for condominiums continues to grow. Next time I will share the due diligence that you need to do before considering a project to invest to. 

Live a beautiful life! 

Ryan Rillorta

PS. Do you want to become Truly Rich? You see, being rich is not just about being financially wealthy. It is about balancing all the aspects of your life. Winning in all areas of your life. Let my mentor Bo Sanchez guide you to become truly rich. Click here

PS2. Since I'm still building this site, posts about specific DMCI projects are still yet to come. To see my full listing Click here

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