A condominium unit can be a great investment for your long-term plans, so like any investment, it must be properly thought out and planned before you act. Below are a few things you might want to consider before going off and buying your own property to live in or to rent out.

Location

When buying any form of real estate, one of the major factors a potential buyer should consider is location, and condominium units are no exception. A property’s location greatly affects (1) the potential of price appreciation and (2) access and convenience in its proximity.

The Makati area (mostly the central business district), for instance, has always proven to be a good investment area seeing as it has been the business center of the Philippines for the longest time. Fort Bonifacio Global City has seen the prices of real estate skyrocket in the last few years due to the development efforts that have been going on and its development as another central business district area in the metro.

The location of a property also determines its proximity to needed comforts and conveniences. Some properties are very prominent for being around schools, such as SMDC’s Residences series. Others are situated near other important areas such as near malls, hospitals, your favorite restaurants, and other establishments 

Most condominiums nowadays are strategically built with convenience stores, coffee shops, laundromats, fast food restaurants, and other stores. Most of these establishments are open 24/7 which might be more convenient for you if you suddenly find yourself jonesing for fast food at 2 AM. The downside, however, may be the traffic and noise that comes with all the car and foot traffic within the day. 

Developer

For condominiums that are still in the pre-selling stage, the reputation of the developer matters a great deal more because it ultimately determines whether the property will actually be completed or however long the turnover period might be. There have been cases of condominium projects in the past that have had construction halted in the middle because the developer ran out of money. In such a case, these may prove to be bad investments.

For properties that are already ready for occupancy (RFO), the reputation of the developer can tell you a tad bit about the standard of the property and whether or not they are willing to work with the homeowners to improve the living situation. Condominium management means the adoption of effective security measures, strict implementation of condo rules, and proper maintenance of the building, all of which should be a joint effort in any regard.

It may be wise to look at which developers have had a history of proving themselves able to turnover projects within the specified dates and which ones have been able to provide pleasant living experiences for its tenants.

Amenities

Any property may carry a hefty price tag because of the amenities it offers. Normal amenities may include a swimming pool, gym, children’s playground, common rooms, and function rooms. Assess whether these are amenities you will find yourself needing or could do without.

Be concerned about the population density of the property. “Population density” here refers to the number of people per available unit area. In a condominium, this translates to the number of residents sharing amenities. Of course, the more residents a condominium has, the less space is available to you. 

This also plays into the small things that may add up over time; a condominium with elevators that are constantly out of service might bring more delay and hassle to your everyday life; the same can be said with a condominium with only a limited number of elevators to service the many tenants that live there. 

In short, the more people living in a condominium, the more inconvenient it may become as you will have to share the same amenities with more people.

Association Dues

Living in a condo unit means paying an additional expense every month: the association dues. This represents your contribution to the shared costs incurred by all condo owners, such as electricity in common areas, water used in swimming pools and to water the plants, wages of security guards, janitors, and maintenance workers, among others.

The association dues are usually a fixed amount that is multiplied by the total floor area of your unit and your parking slot, should you choose to avail of one.

For sample computations, a condominium in the Makati central business district may run with around P50.00 per floor area while one in the BGC area may charge P80.00 per floor area; this means that for a 40-square unit, association dues will be around P2,000 per month (P50 x 40 sq.m.), while the same unit will charge P3,200 per month for its association dues.

Make sure you are financially prepared to pay these dues on time because like credit cards, the penalty interest rate for late payment ranges from 1-4% per month, which is quite a hefty price to pay for late payments.

Rules and Regulations 

Knowing the rules and regulations of the property you want to buy a unit in is important as As a resident, you are bound by the rules and regulations applicable to all residents and tenants of the building you’re looking to buy a unit in. Some properties, for example, totally disallow pets and animals of all kinds; there are also condos that forbid tearing down a part of your unit or changing the color of your wall without the express permission of the association. Some condos allow residents to use the swimming pool or the common area up to a certain time only, or allow  parties inside residents’ units but limited the time allowed — normally, the usual cutoff for visitors for some condominiums is around 10 or 11 p.m. Knowing the rules prior to buying or moving in so you won’t be surprised by the regulations once you have moved in would be the wise thing to do and should be one of your considerations as well.