Condominium Investment Advice | Genesis Kelly S. Lontoc


INVESTMENT is a necessary and important step to achieving financial freedom. A popular housing investment option in the Philippines is a condominium or condo. According to the Merriam-Webster dictionary, a condominium refers to individual ownership of a unit in a multi-unit structure or on land held in common. The number of condominium units has shown a steady increase over the years. It is therefore worth taking stock of the various elements to consider when considering investing in a condo.

It all starts with determining the goal. You need to have a clear financial goal; and the role of the condo in achieving the objective must be defined. For the condo, the purpose of the property must be known. A goal related to condominium investment can be helpful. For this purpose, the condo is intended to provide shelter and a home for an individual or family. A goal related to condominium investing can be income generation. For this purpose, the condo serves as an asset that can yield good returns through rent.

Location is very important to consider when choosing a condo. Land is a finite resource, so every inch of prime location makes a difference. Knowledge of prosperous economic sectors can give indications of attractive locations. Knowledge of major national government and local government infrastructure plans in urban and rural areas can point to the right locations. Further research into environmental and social characteristics can help assess a particular location.

The developer of the condo is an important consideration. A developer’s reputation, track record, land reserve and financial strength give an indication of its credibility. Future plans, especially those dealing with innovation, give an indication of the developer’s vision. Integrated living spaces, green living and townships are just some of the innovations that are rocking the real estate market. The efficiency of the property management company in maintaining the upkeep of the condo is also important.

Budgeting for condo expenses should be considered. One type of expense will be property tax, which is paid on an annual basis. Condominium investors should be aware that there are discounts given for early payments. Hopefully the taxes collected will be used for prudent development items. Another type of expense will be association dues which are used to maintain condo support services. Utilities, entertainment, and connectivity expenses should also be budgeted for.

Like any investment, there are pros and cons to investing in a condo. An advantage would be in terms of security. This comes in the form of both regular security personnel deployed to a condo and support from condo neighbors. Another advantage will be at the level of maintenance. Aesthetic environment and asset repair are common examples of maintenance support services in the condo. The facilities offer large spaces for wellness, relaxation and socializing activities.

Investing in condominiums can generate good financial returns. A return will be in the form of price appreciation. Positive developments related to both the condominium and its immediate environment can increase its heritage value. Another return will be in the form of rental income. Proximity to key locations like schools and offices can ensure there will be strong demand for strategically located condos in key areas. There are downsides to consider. Ongoing costs, more rules, and lack of privacy are some of the downsides.

Although condo ownership can be a symbol of financial progress, due diligence must be done in order to get the most out of investing in a condo. An informed decision can lead to desirable results. From a broader perspective, successful real estate decisions will further support a growing Philippine economy.

Genesis Kelly “Gemmy” Lontoc is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 94th RFP program in March 2022. To inquire, email [email protected] or text at 0917-6248110.


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