Condo as an Investment vs. Condo as a Home: Which is Better?

Condo Living.

As an aspiring homebuyer, you need a clear goal before making an investment as important as owning a condo. What do you plan to use it for? Will you live in it, rent it out, or sell it later for a higher price?

The right condo purchase decision depends on your situation and financial goals. Here’s a guide to help you figure out whether a condo is better to use as an investment or as a living space.

Why get a condo as an investment?

1. Earn extra income from condo rental

How to make your hard-earned money work for you? Buy a condo property in a good location and rent it out. Once you find a tenant, you’ll soon start making a profit from your condo investment. The monthly rental fees you collect can be used to pay your bills, add to your savings, or invest in other financial instruments like bonds and stocks.

2. Gain a long-term profit

Apart from condo leasing, you can make money from a condo investment even while you sleep. Get a condo unit and then sell it later for a lot more than the price you purchased it for.

With condo prices increasing over time, you’re assured that the value of the condo you buy today will be higher when the time comes you decide to sell it. According to data from the Bangko Sentral ng Pilipinas, condo prices enjoy stable growth—ranging from 2.3% to 8.7% since 2015 up to 2017.

Compare that to the depreciating value of a car or a high-end smartphone model, and you’ll realize there’s no better time to invest in a condo than now.

3. Plenty of profitable condo locations to choose from

Flair Towers Mandaluyong City | DMCI Homes

Flair Towers, a DMCI condo in Mandaluyong City. Photo courtesy of DMCI Homes

Is buying a condo a good investment in the Philippines? Yes, the country’s condo property market performs even better than its Asian neighbors.

Putting up a condo unit for rent in Makati or anywhere in Metro Manila results in better rental yields than in other Asian cities, based on the latest Colliers International Philippines residential report. So use this opportunity to your advantage.

While condo properties in major financial districts are very much in demand, those located in up-and-coming business districts in Metro Manila also attract a lot of potential renters. Consider getting a condo unit in Mandaluyong, Quezon City, Pasig and other areas in Metro Manila ideal for condo investment this 2018.

4. Diversify your investment portfolio

Photo courtesy of Benzoix via

If you’re already investing in bonds, mutual funds and stocks, adding a condo for rent in Mandaluyong as an investment will give your portfolio a boost. For instance, when the value of your stocks takes a nosedive, your lower-risk condo investment can balance out your net gains.


Why get a condo as a home?

1. Safety, privacy and convenience for your family

Family Time in Living Room

Photo courtesy of Pressfoto via

Planning to move out of your parents’ home to raise a family of your own? Good call! Getting a condo before getting married or having a baby makes the transition a lot easier. Compared to buying a house and lot, it’s faster to move into a condo, especially if it’s a RFO condo meaning ready-for-occupancy unit.

Living in a condo community comes with a lot of benefits for starting families. There’s a sense of stability, as your family will be staying there for as long as you want without having to move from one home to another.

Safety is another advantage of getting a condo as a home. DMCI condo communities, for example, have 24-hour security, fire alarm and sprinkler system, and CCTV cameras to ensure your family is secure round the clock.

Condo living is also more convenient than living in a house and lot. Residents of DMCI condo communities, for example, enjoy easy access to schools, malls, major roads and a variety of transportation options.

2. Enjoy a sense of freedom through independent living

Woman floating in swimming pool

Want to make your adulting goals a reality by living solo? Condo living affords you a space to call your own—no need to adjust to anyone’s rules, schedule, mood and quirks.

3. Enjoy hassle-free living

Living in a condo community can save you time and effort in doing maintenance tasks. No need to worry about cleaning the pool and watering the plants because somebody else will handle it.

Also, you won’t even have to get out of the condo premises when you need to refill water, hit the gym, hang out at the pool or buy snacks—just go downstairs or walk to the next tower to access DMCI condo amenities.

4. Your money goes to something you actually own

Buying a condo for personal use is a practical choice when you want to stay for good in a particular area. Rather than hop from one apartment to another and pay a monthly rent, it’s better to pay monthly amortizations to own a condo.


Condo as an investment vs. condo as a home: Which is the better choice?

1. Get a condo for investment if it’s located in an area ideal for renting and selling

Is the condo you’re eyeing located in an accessible area? Location is an important consideration when investing in a condo property. To maximize your returns, choose an area where a lot of people are likely to rent or buy a condo.

2. Get a condo for personal use if you’re a first-time homebuyer

While investing in a condo is more financially rewarding than living in one, the latter is a better choice if you still don’t have a permanent living space to begin with. Once you’ve settled down to your condo as a home, you can start saving up to buy another condo for investment.

3. Or you can do both at different times

The beauty of real estate investing is that you can strategize according to your financial goals. Overseas Filipino workers or OFWs, for example, can buy a condo and rent it out while they’re working abroad. And when they return to the Philippines for good, they can choose to settle there with their family.

Alternatively, you can buy a condo to live there first. When you’re capable of buying another condo property, you move into the new unit and put up your older unit for rent or sale.

4. Whichever you choose, it teaches financial discipline

organized money saving notes

While you’re still young and have a high earning capacity, you’re in a good position to future-proof your finances with a condo purchase either for investment or personal use. You have a lot of time and energy to save up and invest in a condo, so you’d better make the most of it!


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