Everybody always wants new things - the latest, greatest, and the most up to date. We all like new inventions, innovations, and trends. Anything that’s new, different or unusual is bound to catch our eyes. From technology advancement to cars, we all get curious and hooked to eyeing what is new.
We all get excited with a new phone, a new working environment, a new set of clothes. We get curious about visiting a new country, trying out new hair color, and even exploring a new kind of investment.
Such a trend is also applicable and common in the real estate industry as seen in the demand for the latest real estate projects and newly built properties. New projects are usually considered as more appealing to the market but this does not mean that buying an old condominium for investment is a no-no. In fact, buying an old property has benefits too.
In case you are planning to invest in an old condo property, it is important to understand its advantages and disadvantages before starting your property search. In some cases, you may find that buying an older condominium unit may actually suit your needs better.
Aside from the obvious benefit that old condos tend to be cheaper and more affordable, investors and condo buyers may still see other value in investing in old condos. We have rounded up some of the benefits of buying an old condominium unit to help you come up with an informed decision.
Although some of the old condominium properties may show signs of wear and tear, there are still tenants who are willing to rent the place taking into consideration centrality and a rental rate that is slightly lower than the newer ones.
Higher rentability does not necessarily meanhigher rental income, rather, it pertains to how easy and fast the unit gets rented.
Who would not want to rent an old condo unit that is near the train station, within the Central Business District, or across a university? For as long as it is located strategically, it has a better chance of getting rented.
Provides more value
One of the most important things to consider in buying an old condo unit is the value it provides. While investing in an old condo entails some renovations or improvements, you can still save money from buying a cheaper unit in an old property. You might even be able to afford a larger unit than what you can afford if you are to purchase a newly built property.
Additionally, old condo properties also have a proven resale value, since any exchange is between a willing buyer and a willing seller and will likely meet each other’s demands and needs.
Renovation is the key
An old condo property is also ripe for adding value which can help fast-track your wealth. Perhaps, an interior makeover can improve the property value, rentability, rental return and depreciation of an older property, something that can’t be done with a new property.
Renovation can make an old condo property as attractive as a new one, but with more growth potential.
Customize your home
Buying an old condo unit gives you the freedom to customize it. Nowadays, new condo projects come with fittings, finishings, and even furniture. So to those who want to have a design of their own, getting an old condo would be better.
Typically, these conditions don’t usually exist when buying an old condo unit since you are given the freedom to style it the way you want to.
What you see is what you get
The most underrated aspect of buying an old condominium unit is the fact you can view it anytime and explore it in person. Unlike if you are thinking about buying a new, pre selling condominium, you can only see the model unit, watch a virtual tour of the property or look at 3D renderings.
This will lessen your tendency to be disappointed for not achieving what you have imagined the unit to be. Being able to see the property before you purchase it gives you the assurance and peace of mind that you are getting the unit that you have personally viewed and assessed.
While investing in an old condo posts a number of benefits, there are also some areas that you need to consider and think about.
Less intuitive design and layout
Old condominium properties feature design and layout that aren’t as intuitive as new and modern buildings.
One of the reasons why new condo projects are more expensive on a per square basis than an older condo building in the same location is because you are paying a premium on its state-of-the-art features and modern amenities that you won’t be able to see in older properties.
An older condo unit may require more maintenance, upgrade, or even renovation. It is better for you to conduct due diligence if you are looking at buying an old condo property.
Old condominiums can still be an investment-worthy property if it is situated in a strategic location. The centrality of a condo unit is good enough to make up for its age. You can also capitalize on an area’s infrastructure improvements and upcoming changes by getting an older and cheaper property in the area.
Lower rental returns
While there is higher rentability should the old condo be situated in a good location, in close proximity to business establishments, transportation hubs, and universities, rental returns tend to be lower, so that’s something you should consider.
For some condo buyers, purchasing a unit in a new building makes a lot of sense. However, buying an old condominium property should not be dismissed. This is especially true if the property location and space are incomparable.
We have to keep an open mind and remember that old properties are not always at dead-end just because they were developed years and years ago. We can do a lot of things to make an old condo unit look as attractive as new.
Before buying an old condo unit, it would help if we can do some research. As an investor, you have to know whether such condo units can still attract tenants along with the possibility of spending for renovation and maintenance.
Choosing between a newly launched condo project and a ready for occupancy (RFO) condo for your investment? Here are some of the reasons why most investors prefer ready for occupancy condos.
You can start renting out the place immediately
This is the number one reason why most investors choose a ready for occupancy investment property. A newly launched condo project may take a couple of years before it is ready to be occupied whereas tenants can easily move into an RFO property immediately.
Some developers also have their in-house leasing team that can help you rent out your unit easy and hassle-free.
By having rental income to cover repayments or at least subsidize them, investing in a ready for occupancy condo property is something to consider.
You can predict the rental income
It is easier to predict the rental income of a ready for occupancy condo unit. You just have to research the current rental rate or look at what the current or past tenants have been paying. You may also ask the agents on past rental transactions of a particular condo so you can have an idea on how to work out the vacancy rate.
No surprises with proper checks
With ready for occupancy condo units, you can check the property as long as you want to. You can inspect the physical condition of the unit, you can determine which ones to be repaired, and you can estimate how much it would cost you.
In this case, surprises are more easily avoided, provided that you do proper checking and thorough inspection of the unit before purchasing it.
Get a feel of the community
With RFO condo units, you can get a feel of the community. You can visit the property at various times of the day to gauge issues such as traffic noise, neighbors’ behaviors, or how busy the area is.
These are some concerns that you won’t be able to predict when buying a newly launched property.
If you are looking at investing in a condo, you may want to look at the various condo projects of top property developer, Vista Residences.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc., which 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 premium universities and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
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.
Meanwhile, the ready for occupancy condo projects of Vista Residences that you may consider investing into are Pine Crest, The Symphony Towers, and Wil Tower.
Pine Crest is a condominium development that offers the luxury of living in a serene, green, and secure community while still having access to the comforts of the metro.
It features three mid to low-rise towers in a Swiss-inspired enclave tucked in the serene neighborhood of New Manila in Quezon City. Towers 1 and 2 consist of 5-storeys while Tower 3 is a 15-storey structure. Each of the towers is named after the famous Swiss cities Geneva, Zurich, and Lucerne.
The units in Pine Crest are fitted with a balcony, which offers a serene view of the verdant landscape surrounding the area. At Pine Crest, you can enjoy the fresh and crisp morning air with your cup of coffee or have a glass of wine, feeling the cool nighttime breeze as you wind down from your busy day.
Nestled along main thoroughfares – Aurora Boulevard and Gilmore and E. Rodriguez Avenues, Pine Crest is very accessible as it is just a 5-minute walk from Betty Go-Belmonte and Gilmore LRT stations, which makes it an easy train ride away from Metro Manila’s University Belt.
Pine Crest sits right beside Robinsons Magnolia and is also just a few minutes away from Greenhills Shopping Center, Ortigas Business Center, and Tomas Morato, where a whole range of lifestyle activities as well as a multitude of retail and dining establishments are located. Pine Crest is also in close proximity to educational institutions such as St. Paul University Quezon City and University of the East Ramon Magsaysay Memorial Medical Center, Inc. as well as premier medical facilities such as St. Luke’s Medical Center and Cardinal Santos Medical Center.
The Symphony Towers
Bringing a whole new groove and beat to city living is The Symphony Towers which is located along Sgt. Esguerra avenue corner Timog avenue in Quezon City.
The Symphony Towers is a two-tower condominium development that offers exclusive residences as well as commercial and business establishments. Two floors in each tower are dedicated to offices while the remaining floors are allotted for residences complete with amenities and a roof deck that offers the best view of the city.
As it sits in the middle of Quezon City, The Symphony Towers is just a few minutes away from the country’s largest TV networks such as GMA 7 and ABS-CBN, transport hubs such as GMA-Kamuning MRT station and some of the most prominent schools in the metro such as the University of the Philippines, Ateneo de Manila University, and Miriam College, among others.
Located a few minutes away from The Symphony Towers and just across ABS-CBN, along Eugenio Lopez Drive, Diliman is Wil Tower, a 42-storey condominium development that offers an ideal urban sanctuary in the city.
Wil Tower offers well-thought out features and amenities as well as exclusive residential units that will let you experience comfort and style in urban living. At Wil Tower, you can lounge in the pool, enjoy sauna, try al fresco dining, shop for amazing home décor at AllHome or simply hit the gym – all without leaving the comforts of your own condo unit.
Vista Residences also offers leasing services that would benefit both end-users and investors who aspire to turn their purchases into working investments.
Vista Residences is part of Vista Land’s roster of vertical housing brands that cater to millennials and young professionals. The other vertical brands include Camella Manors, COHO, andCrown Asia.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and Youtube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.