What are the Most Common Housing Options in the Philippines?

Most Filipinos dream of having a place that they can call their own. Sadly, the current housing backlog in the country has reached 3.9 million households, which means that there are millions of families that don’t have the option of purchasing a housing unit of their own. By 2030, this backlog is expected to swell to 6.5 million households despite the fact that there are thousands of agencies and organizations that propel the housing industry in the country.

Now is a good time to consider long-term housing options for you and your family, as the demand for homes will only increase as the years go by. It’s also wise to consider that the housing market tends to follow the ebb and flow of the economy.

Given the current economic crisis, there are certainly better times to meet with housing agents and attend open houses. To get ahead of the competition and to make the most out of housing opportunities that may come your way, you need to have a good idea of your non-negotiables and nice-to-have elements in a long-term home.

One of the ways to do that would be to decide on the type of housing you want to own. These are the most common housing options in the Philippines:

House and Lot

Owning a house and lot is a dream come true for many people in the country. A plot of land is a long-term investment that will only appreciate in value over the years, and you can eventually sell it or pass it on to your loved ones. A residential lot may or may not come with its own house. The new owners can choose to live in the existing structure, or they can take out a housing loan and renovate the structure or construct a house that’s closer to their idea of a dream home.

Location is a big deal when buying a house and lot. The property might have everything you want in a home, but it may be located in a place where you can’t envision yourself thriving. On the other hand, you might be tempted to buy a lot in a very convenient location even though the structure standing on it doesn’t necessarily check all your boxes. Once you do buy it, though, the lot is yours to do whatever you want with it.

Pros

  • A house and lot offers more space compared to a townhouse or condominium unit.
  • House and lots are often viewed as an ideal environment for raising a family.
  • You have total control over the space since you own the property in its entirety. You can own pets or add mobility features and elements that enhance privacy, to name a few.

Cons

  • The entire property’s upkeep is your sole responsibility. You can’t expect a management office to take care of an overgrown garden or clogged plumbing, for example.
  • Utility bills for house and lots tend to be higher, as freestanding homes are often more spacious compared to individual condominium units or townhouses.

House and lot prices vary depending on a great number of factors, but this housing option can be cheaper than condos on a per-square-meter basis.

Townhouse

Townhouses, more often than not, refer to 2-level homes that share a wall with each other. It’s the most common form of housing offered by residential real estate developers. These structures are sold to buyers in a completed state, with all the utilities in place. Typically, the owners only need to furnish the home, but if they want, they can renovate or remodel the house to their taste.

Pros

  • The cost of maintaining the exterior of a townhouse can be shared by the homeowners.
  • Townhouses are often situated in gated communities that offer good security and access to shared facilities.

Cons

  • There’s a lack of privacy due to the fact that homeowners are sharing walls with their neighbors.
  • The units tend to look the same and there’s little room for self-expression outside the house.
  • Townhomes are often designed with minimal space for front and back yards.

Townhouses are often more affordable compared to purchasing a house and lot or a condominium unit.

Condominium Unit

Last but not the least, a condominium refers to a private housing unit located in a larger building. Condominiums often have facilities like gyms, swimming pools, and manicured grounds that are shared by the people living within the structure. Choosing to live in a condo has its share of advantages and disadvantages.

Pros

  • The building has maintenance workers who will take care of the upkeep of all shared facilities.
  • These buildings feature shared facilities like swimming pools, function rooms, and jogging paths.
  • Condominiums are typically built in downtown areas so residents have easy access to city conveniences.

Cons

  • Residents are required to pay an upkeep fee on top of their mortgage.
  • Living in a condo means abiding by the rules set by the management that governs the structure.
  • The residential units are placed side by side, which can sacrifice the privacy of the people living in them.

Which among these options best fit your lifestyle and plans? Choosing the housing type that suits your current and future needs can help you narrow down your options in the market. If you have a clear idea of what you want in a long-term home, you’ll have an easier time making a life-changing decision once you encounter a property that has all your non-negotiables.

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