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.
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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, 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.
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.
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.