Condominium or house and lot in Iloilo? What to consider and financing options

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Everyone dreams of having a place to call their own. Young professionals or those starting families might want to seek a more independent lifestyle to suit the needs of modern times. 

Iloilo City, Philippines is an emerging business and culture hub in the country. Noticeable now in the city's skyline are new residential buildings and projects. Much publicized are the new and existing condominium projects such as Terranza, Bernwood, Avida, and various buildings in the Iloilo Business Park-Megaworld Mandurriao area.

For those who prefer living in houses, there are also many options available such as Deca Homes, Camella Savannah, or Lumina Homes. Or you may also go for the traditional route of buying land and building a house from scratch.

If you are choosing between the two, here are some things to consider:

Condominiums

Real estate is always a good investment option, and condominiums in prime locations will be easier to market. If you are looking to buy property as an investment, condominiums are also a good option.

Condominiums are often located in prime locations with easy access to major roads, malls, schools, or hospitals. It's also a plus if its near to your workplace.

Condos also often offer amenities such as an in-house gym, swimming pools, parking, and other recreational areas. 

If security is important to you, condominiums are often safe with its own security personnel and equipment such as fire alarms or CCTV cameras. 

Since condominium units often have smaller spaces that a typical house and lot, cleaning and maintaining the place is easier with less space to worry about.

However, there are also disadvantages to condo living. There are fees such as association dues and taxes that you need to pay regularly. The smaller space, which can be a convenience, may also feel  restrictive. You may have less freedom to renovate your space, and living in these places also have their rules. Since you share the building with other people, you may also encounter unruly people or shady neighbors.

House and Lot

If you buy a house, of course you have exclusive rights to your property. You are free to do as you please with your space, unlike the limitations of a condominium.

A recent survey by Colliers International Philippines, a real estate service agency, showed that 51% of Filipinos still prefer buying houses instead of condominiums: “Property seekers show a strong interest in owning houses more than vacant lots and condominiums. This could be due to the presence of affordable housing segments scattered all over Metro Manila and in key provincial cities.” (Source: Philippine News Agency)

Houses can also be as spacious as you want them to be (given with the land you have). Having your own house also means greater privacy. They are still considered as one of the most stable investments as real estate tends to appreciate in price.

There are also disadvantages: cost of maintenance, bills, and the distance of your location to major places or your workplace.

What to consider

There are pros and cons for each option but the right choice will always be what is suitable for your needs. Whatever your choice is, your budget is the most important thing to consider. General advice says that 28% of your monthly income should be spend on your mortgage and not more than that. This mortgage calculator is a good tool in determining what you will spend on average in paying your mortgage. To check mortgage affordability, you may want to check out this online calculator to check affordability.

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Location is also a major factor. If you live in the city, a condominium may me a more convenient option. If you prefer to have a more relaxed and private environment, a house may be for you.

Condo living may be preferable for single young professionals, small families, retirees, or those who may want an investment. A house is better if you have a large family or looking for a more long term investment.

Condominium or House and lot in Iloilo? Financing Options

Pag-ibig Fund or the Home Development Mutual Fund is a popular and affordable option for many Filipinos. Pag-ibig is a government owned corporation responsible for the administration of the national savings program and affordable home financing for Filipinos. My family's home was bought with the help of Pag-ibig. They have several housing loan options for a range of budgets. Borrowers can loan up to 6 million pesos with low interest rates.

To avail of a housing loan in Pag-ibig, you should be an active member with at least 24 months savings; not older than 65 years old; with legal capacity to acquire property; and have no existing loans. Visit their website for more information or visit the a Pag-ibig branch near you.

Banks also offer housing loans. Rates vary among banks, so its best to inquire with a bank of your choice.