What are the different types of residential properties to invest
or live in? What factors should you consider when choosing a home?
These are just some of the questions answered by Angela Manese, our Residential Sales and Leasing
Manager, in the first installment of our web series on buying
and leasing or renting residential spaces. Join her as she doles
out advice for investors, starting families, yuppies, and other
Filipinos or expats looking to buy
or lease a condo or house in the Philippines. (Watch Part 2 here.)
Hi there! Thank you for joining me here in KMC Expert Talks. I'm
Angela, KMC MAG Group's Residential Sales and Leasing Manager and
today I will answer some of the most common issues and questions
about leasing, buying, and choosing a house or condo in the
1. What are the different types of residential properties
to invest or live in?
In the Philippines, you can invest in two types of properties,
either a house and lot or a condominium unit. House and lots are
usually found in subdivisions or villages. They can be further
classified into 4 types: single-detached, single-attached, duplex,
Single-attached and single-detached houses are pretty much the
same thing, they both refer to a house that's standing in 1 lot.
They are only different when it comes to layout -- a
single-attached house is attached directly at the side of your lot,
so it's only open on one side. A single-detached home is pretty
much unattached, so there are spaces on both sides and at the front
Duplexes, on the other hand, are 2 different houses with separate
entrances, but are standing in 1 lot. If there are 3 or more houses
standing in 1 big lot, then that's classified as a townhouse.
For condominiums, there's 3 types: low-rise, mid-rise, and
high-rise. Another way to differentiate residential properties is
through the title. A house will have a TCT- transfer certificate of
title while a condo will have a CCT- condominium certificate of
transfer. Some townhouses will also have a CCT instead of a TCT
since the lot is shared by more than 1 house.
2. What factors should you consider when choosing a
The first thing is your priorities, of course. What matters to
you? Is it proximity to work or the office? And if you have kids,
would you want them to be close to their schools? Matching the
location to your lifestyle is very important. Singles and young
professionals would want to stay close to transportation and
entertainment hubs and spots like gyms, malls, restaurants, etc.,
while most married people would prefer villages or subdivisions
that might be far from the city center, but offer proximity to good
schools and quiet neighborhoods.
Another important consideration is your budget. Purchasing a
property that's not within your means may only cause a bigger
problem, and in the end, you might just end up losing it while
swimming in debt. Calculate your debt-to-income ratio by dividing
your gross monthly income by your fixed monthly expenses. Your DTI
should only be at 10 to 30 percent. For example, if your monthly
salary is at Php 150000, and 30,000 goes to food, rent,
transportation, utilities, bills, etc. which is at 20% DTI, then
you can afford a house or condo that requires up to Php 15,000 a
The third consideration is your deal-breakers. It's really
difficult -- or almost impossible -- to find the home that can give
you everything you want. For example, if you want to stay in the
city, but you want a large house with a garden and several rooms
for your growing family, you might have to give up proximity to the
city centre to get the larger space. Narrowing down your absolutes
will be a sure way to avoid wasting time on unsuitable properties,
and instead allow you to determine exactly what you are willing to
compromise on and what you simply can't live without. The key is to
ask yourself: "If you only have a certain amount to spend, how
exactly would you use that money to best benefit your needs and
reflect your lifestyle?"
3. What about investors?
For investors, it's important to consider the resale potential of
the property. This is actually a general rule that also applies to
all homebuyers. You have to look at the general location of the
property, how well the home is, and if it's likely to grow in
value. You would want to invest in a property where prospective
tenants would like to live. It may be good to consider investing in
developments with the live, work, play balance to attract more
This is also something starting families should keep in mind,
because eventually you would sell the current home you are in, so
evaluating how and who you might be able to market your property to
down the road is an important part of narrowing down your selection
and planning for future investment potential.
And that is it. Stay tuned for next week's episode where I will be
sharing with you my recommendations on the best Philippine
locations to find residential properties. Thank you for joining us
and I hope to see you again next week!