Condos are a great investment if you have some critical factors on your side. … So, for a full answer, yes, it is completely possible to make a good investment from real estate in the Philippines; however, there are three areas you should consider before you dive in. Let us look into these in more depth.
How long can you own a condo in the Philippines?
Condominiums are essentially corporations
Corporations, as mandated by Section 11 of Batas Pambansa Blg. 68, otherwise known as the “Corporation Code of the Philippines,” cannot exist for more than 50 years; hence, it follows that a condominium can only exist for 50 years.
How much is it to buy a condo in the Philippines?
Most condominiums in the Philippines today, especially in the major cities, cost millions of pesos at the very least. But you actually need only a little more than P20,000 to acquire one. In fact, in a lot of cases lately, even less than that!
Is it worth investing in a condo?
Let’s cut to the chase: Yes, condos are a fine investment. You just don’t want to get a junky one that’s poorly managed. … Don’t get us wrong: Buying a condo is still one of the most expensive purchases you could ever make. But a condo is typically tens of thousands of dollars cheaper than a single-family house.
Why is it a bad idea to buy a condo?
Owning a condo harbors more financial obligation than single family homes and gives you more uncertainty when it comes to estimating unexpected expenses that you might incur. The best rule is to always overestimate your expenses when buying a condo for investment.
What is the life of a condo?
It will usually last up to about 10 years, after which it will require maintenance and replacement by the time it reaches 15 to 18 years. The next in line will be the cooling plant which may be operational for about 18 years, with required maintenance for another two to three years and replacement after 20 years.
Can you live in a condo forever?
While a landlord can clear out a rental building at any time, assuming there are no complicating rent control regulations, a condo is yours forever. …
Is it easy to sell condo in Philippines?
In the Philippines, anybody can sell real estate! Given that there are so many developers and sellers out there looking to put up their properties for sale, it can be quite difficult to do because of all the transactions and money involved.
How much does a condo cost per month?
Average condo fees range from around $100 to $700 per month, although these fees can go much higher based on what amenities they cover. If the condo complex has high-end shared features such as a swimming pool, gym, and spa, condo fees can be several thousand per month.
What is the disadvantage of buying a condo?
CON: Steep HOA fees in condo communities can outweigh the financial benefits. Condo communities may have gyms, swimming pools, community theaters, and play areas that require expensive maintenance.
What should I know before investing in a condo?
- 7 Things to Consider Prior to Investing. Most people purchase a condo to be a personal residence or vacation home, but they can also make for solid investments. …
- Lender Requirements. …
- Hold Strategy. …
- Assessments, Litigation, Etc. …
- Maintenance. …
- Location. …
- Parking. …
- Comparable Sales.
Does condo depreciate?
Term of Depreciation
You can depreciate the cost of the condo building itself over 27.5 years, equal to 3.64 percent of the cost of the unit per year. … If you sell the condo, the IRS puts depreciation back into the cost basis of the property whether you exercised this tax break or not.
Do condos increase in value?
In general, condos appreciate in value at a slower rate than single-family homes. … Even though condos generally appreciate at a slower rate than single-family homes, they’re still likely to increase in value over time.
Which is better a condo or townhouse?
Condos are often cheaper than townhouses because they come with no land; the exterior and land are considered common areas shared by all residents. Condo owners pay monthly homeowner association (HOA) fees that can be significantly higher than those on townhouses, partly because they cover exterior maintenance.
Do you pay property taxes on condos?
Do You Pay Property Taxes On A Condo? You’ll have to pay property taxes whether you’re buying a single-family home or a condo. … Capital, said that the property taxes are generally the same for a condo costing $200,000 and a single-family home at the same price.