While millennials are known and have been called out for resisting buying real estate properties like condominiums, it looks like they are now planning on buying and investing in real estate to build long-term wealth. This can be seen as a big shift from what they are previously known for - the generation that considered cash as long-term investment.
The COVID-19 pandemic has prompted the “Generation Rent” to rethink and reconsider their priorities. With the sudden shift from working from office to working from home, millennials are now looking for more comfortable living spaces within the city that would give them ultimate convenience, good resale value, and smooth connectivity.
Though the pandemic has shifted the mindset of millennials from renting to buying a condo, it might be good to look at the various reasons why this generation preferred to rent before.
Millennials prefer to rent a condo because for them, it perfectly matches their care-free spirit. When you are just renting a property, you can easily move out whenever you want to, without taking any responsibility of selling the property. Millennials usually rent condos to embrace new job opportunities and to constantly switch from one place to another without worrying about disposing or selling the unit.
Renting has also been considered by some people as less stressful as compared to buying a condo unit, because you do not have to worry about the renovation and maintenance of the unit which are being handled by the landlord. Lastly, when you rent a condo, you are not responsible for paying for the monthly condo fees.
Despite these reasons, most millennials have realized the value of owning a home instead of renting one due to the social distancing protocols as well as the attractive and flexible deals being offered by various condo developers. Hopefully, this new reality will enable more millennials to recognize the importance of buying and investing in condominiums.
A condominium is a type of real estate property where residents own their respective units and all dwellings share ownership of common areas. Condo units normally share walls and the land in the condominium project is owned in common by the residents.
Millennials prefer condominiums over other types of properties because of convenience - short commutes, walkability, and easy access to amenities. They also look into the lifestyle benefits of living in a condo, which include living in a central location, which is very accessible and close to all necessities like transport hubs, market areas, schools, and hospitals. Cost-consciousness and comfort also influence their housing preferences, which makes them choose condos versus other properties.
Whether you choose between buying or renting a condominium, you will get the same exact perks of living the condo lifestyle. While some individuals feel that there is no better investment than buying a condo, others think that renting a condo fits their needs better. The budget is the main consideration in buying or renting a condo since people have different budgets and requirements.
With the “Generation Rent” shifting to “Generation Buy”, they should be able to learn and understand the benefits and the important reasons why they should start investing in condominiums. We have rounded up some of them to guide millennials like you to take the next step and invest in a condo today.
Condos are affordable
For millennials, it might seem like renting is more affordable than buying a condo unit, but this is only applicable for short-term rentals. In many cases, when you sum it up, people are paying more in rent than they would in paying for their mortgage and condo dues combined.
Additionally, you can have and enjoy your own living space for years without burning a hole in your own pocket. Condos are affordable and available at very competitive prices especially now that there are a lot of developers in the market.
It also makes a lot of sense to pay for something that you would eventually call your own.
Condo investing is cost-efficient
When you think about investing in a condo, you can be sure that you are making a good investment for your future. Condos have another money-related advantage - all major expenses are shared by all the condo residents through the condo dues that are being paid monthly.
While the biggest part of the condo dues go to basic property maintenance like gardening and window cleaning, part of it goes to a reserve fund which is used to cover occasional maintenance like repairing a leaking roof or replacing a broken window.
This means you do not have to shell out money in case there are things for replacement or repair.
Access to modern amenities
Millennials are also being tagged as the always-on generation and the digital natives because they are always online and busy chasing a lot of opportunities and challenges to avoid the fear of missing out.
Investing in a condo will enable them to optimize their lives since it gives them access to almost anything they need, whenever they want or need it. They do not have to be a member of any fitness center nor travel just to be able to buy food or the essentials.
Moreover, condos have fitness centers, pools, and even convenience stores or cafes within the property that makes it easier for millennials to do a lot more of what they need to do without having to step out of the building.
If there is one thing that makes millennials stand out from the rest of the generations, it would be choosing the place to live. Millennials are always geared toward living in one of the prime locations in key cities.
Condo living makes this possible without spending too much money. Imagine living in a condominium property that is in the middle of everything - close to train stations, near the city’s popular hang out places, shopping malls, and restaurants, and literally a few minutes away from all your lifestyle needs.
Buying a condo is a good investment
Aside from the fact that condominiums cater to the lifestyle needs of the millennials, this generation also has to think about the property value appreciation that could benefit them and even make them a millionaire in the future.
As prices for residential properties continue to rise, buying a condo seems like a very smart investment. The most forward-looking millennials understand that buying a condo property in a prime location, regardless of its size, will pay off some day.
As soon as it starts to feel like they have grown out of their compact place in the city, they can easily move elsewhere and turn their former home into a rental unit, which can give them passive income in return or just sell it.
A lot of people prefer buying or investing in condos because of its continued popularity, which means it is easier to sell than a typical house and lot, when the time comes that they are ready to dispose and sell it.
Some financial experts also advise millennials and young adults to start investing in real estate, especially in condo instead of renting, due to various reasons aside from those mentioned above - investing in a condo will enable millennials to learn how to spend smarter. Rent payments go straight into the pocket of the landlord while mortgage payments are an investment in the future. As the remaining mortgage balance is reduced, your property value appreciates, and at the end of the day, it is best to spend your money on your own property rather than on short-term expenses that would not provide any value in the future.
Real estate is often recognized as a risky investment because of the market conditions that can change any time. As a first-time investor, you need to be ready to take any risk if you want to invest in property. You must also be prepared to pay the mortgage costs and other expenses associated with it.
When you think of buying a condo, you can be sure that you are making a good investment for your future. Imagine safeguarding your living space for countless years. Even if you are a first-time homebuyer, you can be sure to get your personal space.
When you own a condo, you also get the chance to build equity and participate in property market growth and use the market conditions to your advantage.
You can also earn money by renting out your condo unit to someone else. You can become a landlord and earn in the form of rental fees per month.
As to choosing whether to buy a ready for occupancy or pre selling condo, it would really depend on your plans and motivations. Some would recommend buying a pre selling condo because of its lower price, much more affordable than the fully constructed ones.
Meanwhile, in terms of the lifestyle benefits, when you buy a condo, you get a chance to live in the heart of the city, which means being in close proximity to all necessities, transport lines, and lifestyle establishments. It also allows you to use modern amenities which are only accessible to condo unit owners. Moreover, you can also enjoy socialization opportunities as well as a sense of community.
Being a homeowner is not easy. It is a big responsibility that you must take on but only if you feel that you are emotionally and financially ready. Depending upon the consequences and risks, you should decide for yourself.
Condominiums are built at strategic locations that facilitate an entertaining lifestyle. It aims to enhance your lifestyle and depending on your creativity, you can also turn this into a great income opportunity. Remember, not everyone has the vision to see what a good property can get them in the future. But if you are eager to learn and grow your money over time, you must always stay updated with the real estate market. It will tell you whether it is a good time to take the plunge but of course, it is still your decision to make, at the end of the day.
One thing is certain, taking today’s market conditions and trends, investing in a condo is a smart investment and an ultimate convenience that you should not miss out.
If you are a millennial, this is the best time for you to invest in real estate. Vista Residences, the condominium arm of the country’s largest developer, Vista Land & Lifescapes, Inc. offers ready for occupancy and pre selling condominium projects in Manila and Quezon City that are strategically located within inner-city areas, in close proximity to developed business districts and prestigious universities.
Vista Residences has ready for occupancy condo projects in Manila such as Vista Taft, Vista Heights, Vista GL Taft, 878 Espana, and Crown Tower University Belt. It also has preselling condo projects in the said area which include Vista Recto, Plumeria Heights, Tennyson Heights, Bradbury Heights, Sky Arts Manila, and Kizuna Heights.
Meanwhile, its ready for occupancy projects in Quezon City include Wil Tower, the Symphony Towers, Pine Crest, and Vista 309 Katipunan. It also has preselling condo projects in the said city such as Hawthorne Heights and Vista Pointe.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.