Condo ownership in the Philippines is a great way to invest in property without all the hassle of maintaining a house and lot. However, there are different types of condo ownership, and it's essential to know which one is right for you before making a purchase. Vista Residences is here to outline the different types of condo ownership in the Philippines so that you can make an informed decision in condo investing.
Bare ownership
This is the most common type of condo ownership. When you buy a condo unit under bare ownership, you will be the sole owner of the property. This means you can live in or rent out the unit as you see fit. It also means that you'll be solely responsible for paying association dues, maintaining the unit, and shouldering any repairs or renovations.
Bare ownership is a good option if you buy a condo unit for investment purposes. You'll have full control over your property, and you can maximize its earning potential by renting it out or flipping it.
Leasehold ownership
When it comes to condo investing in real estate, there are many different options. One option that you may not have considered is leasehold ownership. Leasehold ownership means that you would own the property for the length of the lease. This type of ownership can be a great option for those looking for a more affordable investment in real estate. Here are some of the benefits of leasehold ownership.
More Affordable
One of the biggest benefits of leasehold ownership is that it is more affordable than traditional ownership. This is because you only pay for the lease length rather than the entire property purchase price. This can be an excellent option for those looking to invest in real estate but may not have the full purchase price available.
Flexible Terms
Another benefit of leasehold ownership is that it offers flexible terms. This means you can choose how long you want to lease the property. This can be a great option if you are unsure how long you would like to own the property or if your circumstances may change.
Lower Maintenance Costs
One final benefit of leasehold ownership is that it often comes with lower maintenance costs. This is because the landlord is responsible for maintaining the property. This can be a great benefit if you are looking for a property that requires little maintenance.
If you are considering condo investing in real estate, then leasehold ownership may be a great option for you to consider. There are many benefits to this type of ownership, including being more affordable, having flexible terms, and often having lower maintenance costs. So, if you are looking for an investment property with all these benefits, then leasehold ownership should be on your radar!
Co-ownership
Co-ownership is when two or more people own a condo unit together. This arrangement is often used by married couples or siblings who want to buy a property together. Co-ownership gives each owner an equal share of the property, regardless of how much money they contributed to the purchase price.
If you're considering co-ownership, it's important to have a clear understanding with your co-owner (or co-owners) about how you'll use and occupy the property. There should also be an agreement regarding who will shoulder association dues, repairs, and renovations. Lastly, make sure you're prepared to share a living space with another person—before committing to this type of ownership arrangement.
Freehold ownership
What comes to mind when you hear the term "freehold ownership"? For many, the word "free" conjures up images of unencumbered land or property. And while that's not necessarily inaccurate, there's more to it.
In its simplest form, freehold ownership means you own the property outright. No strings are attached, and you have the right to do with it as you please. This type of ownership is most common with detached homes, but it can apply to condos, townhouses, and even some apartment buildings.
The key difference between freehold ownership and other types of ownership is that freehold owners have complete control over their property. They're not subject to the rules and regulations of a condo board or landlord, and they don't have to worry about their lease being up at the year's end. If you're considering buying a condo, it's essential to understand your options to make the best decision for your needs.
Assignment ownership
As a condo investor, you may be considering whether or not to purchase assignment ownership. Assignment ownership allows you to buy a property before it is completed and then assign the contract to another buyer.
One of the pros of assignment ownership is that you can take advantage of market conditions. For example, if you think the market will increase by the time the property is completed, you can buy now and assign the contract to someone else at a higher price, thus making a profit. Another pro is that getting financing for assignment ownership can be easier than for a pre-construction condo since the property has already been built.
However, there are also some cons to consider. One of the most significant risks is that the market could decrease by the time the property is completed, which would mean you would have to sell at a lower price than what you paid or hold on to the property until the market increases again. Another risk is that the builder could encounter financial difficulties and be unable to complete the project, which would leave you without property or a refund.
Joint venture ownership
A joint venture (JV) occurs when two or more people come together to invest in a project—in this case, a condo unit—and then share in the profits (or losses) from that project according to their agreed-upon percentage stake. For example, if Investor A puts up 60% of the capital for a condo unit and Investor B contributes 40%, then Investor A will own 60% of the property while Investor B will own 40%.
One advantage of joint venture ownership is that it allows investors to pool their resources together so they can buy a more expensive—and thus potentially more profitable—property than they could on their own. However, JVs can be complex arrangements, so it's important to have everything in writing before moving forward with this type of ownership arrangement.
Be a pro with condo investing today!
There are several different types of condo ownership in the Philippines, each with its advantages and disadvantages. The type of ownership right for you will depend on your specific circumstances and goals. Research and talk to a real estate professional to determine which type of ownership makes sense for you before making any decisions.
If you're interested in learning more about condo ownership in the Philippines, Vista Residences is here to help. Vista Residences offers a variety of condo units with different types of ownership so that you can find the perfect fit for your needs. Vista Residences has a team passionate about helping their clients find their dream homes, and they would be honored to assist you in finding the perfect property for your family. Contact us today to learn more!
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.
