Which Is Better For Business, Condo Or Apartment? | Marvin Germo

Which Is Better For Business, Condo Or Apartment?

By: Marvin Germo | March 10, 2019

You Can Earn By Renting Your Units

Whether it is a condo unit or an apartment, you can start earning money by renting those residential units. Successful people don’t just make money by starting their own businesses or investing in stocks, bonds, and other commodities. They also consider investing in real estate because it is one of the major investment type where you can generate a high yield in a short period of time. However, you may be challenged by choosing whether to buy a condo unit or building your own apartment residential units. What makes them different? What is better when it comes to earnings? I will share in this article the common factors you should consider if you want to start your real estate investment.

Catch me in my live training events! (quick plug)

The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.

Investing Insights (Dubai) – March 1, 2019
Stock Smarts Manila —  March 9, 10, 16, 17 & 23, 2019
Stock Smarts Cebu —  April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore —  May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stok Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019

In Terms Of Ownership

Regardless of the unit type, you can earn with both condo and apartment units. When it comes to ownership, you should choose the one that will benefit you the most. When you buy a condo unit, the property will be yours but keep in mind that some contract have a maximum of 50 years ownership. It would be better if you opt to purchase the unit that will be yours perpetually. On the other hand, apartment residential units will be yours forever as long as you build the building itself. No developer is involved here unlike when you buy a condo. Also, the land where you built your apartment is yours. So when you choose to have an apartment, it’s a combo of land and units ownership.

In Terms of Monthly Expenses

In terms of monthly expenses, buying a condo unit means you agree to pay for association dues. This is a fee paid monthly to the residential developer for managing the whole property. While when you choose apartment units, there will still be dues to the village developer but the fee is cheaper. You don’t have to worry about your monthly utility bills because either way, your tenants would be paying for them when you start the renting business.

In Terms of Total Cost

The total cost here is the overall amount you spend to own the condo or apartment units. A condo unit costs around P2-4 million which you can rent for P30,000-35,000 a month depending on the size. The cost already covers the whole furnishing of the unit so the only thing you need to provide is furniture. While for building apartment units, you will pay for the cost of the land, construction of the units, and the construction material. The total cost is higher for apartment units.

In Terms of Earnings

When it comes to earnings, your condo unit can generate up to 30,000 depending on the size and the location. If you have more than one condo unit, your earnings will be higher, so as your association dues. While for apartment units, you can make up to 35,000 depending on how many doors your building consists and the size of each unit. With higher yield and lower monthly expenses, you can generate a higher passive income in apartment rentals than in condo units.

In this real estate investment, I recommend investing on apartment residential units considering the monthly net income you can get compared to condo units. This is what I learned from my interview with Harris Acido, an OFW in Qatar who’s making a lot of money by investing in real estate properties. Check out our video below for the full interview.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
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