09-07-2009, 04:06 AM
Join Date: Sep 2008
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Re: Buying a townhouse is better than buying a condo unit
In order not to mislead some of our co-OFW's who wants to invest in Real Estate, each and everyone of you should present here instead the Pros and Cons of owning a condo or Townhouse unit. Not just presenting one side of the arguments so that everyone will be enlighthened to your proposal not like sounding you're are only favoring one because you're either a selling agent of a condo or a townhouse. A good and a professional Real Estate practitioners should not in any manner give misleading information to his client just for the sake of selling one and getting his commission. Acts of faireness and fair play should be the essence of the game.
A wise buyer or investor should always weigh-in things with objectivity depending on his/her needs. Noteworthy to mentioned some of these factors are:
1. Area or location of the property. Does the area will serve most the investor's pupose or plans very well. The location of the property also sometimes dictates the future saleability of the units. Potential future valuation increment depends on the exact location of the property and future development in the area. This can be determined by using the applicable methods of appraisals- Market data approach, income approach etc. as applicable.
2. Reasonability of the price. Make model, amenities, security, surroundings and environment etc. 2.1 Availability of financing scheme if any.
3. Developer. Does the developer has a proven track records in the Real Estate world in the Philippines for selling quality units.
4. Security of ownership. What form of ownership the investor's may have on the property, For Condo, we have what we called CCT ownership certificates. Four townhouses, we have TCT's. (Each of this form has its own advantages and disadvantages)
5. Oppurtunity or Income potential on the property.Does it a self liquidating investment? Does the property has at least an earning potential or a price appreciation of at least more than the prevailing inflation rate. 12% per annum is better as a hedge against inflation.
6. Does the property has a good selling potentials that you can make at least a desired profit after keeping the property for quite sometime. Does the property can easily be converted into cash when an immediate needs arises?
7. Life span of the unit. This factor is very important especially for the condo units. Why because you cannot just renovate your unit on your own. So you have to compute the cost -benefit ratio on the property based on the life span of the Unit.
8. Cost of maintaining the property, rentals for car spaces, guards, and utilities, real property taxes and so forth.
9. And so many more... These are only some of the basic things you have to consider before buying one.
Thanks and I hope this can contribute to somebody who is aspiring for one.
BE HONEST: Even if others are not…Even if others will not….Even if others cannot. “ He who walks honestly walks securely” Proverbs 10:9