If you are looking to put your money in Philippine property, there is a bevy of real estate investment types for your consideration. From residential properties to commercial spaces, as well as lots versus condominium units. In this article, we take you through the basic types of real estate in accordance to category.
Horizontal versus vertical properties
To best understand horizontal and vertical properties, it is worth looking into the differences of these real estate investment types.
Vertical properties refer to developments that are vertically built such as condominium buildings. For lot owners, their horizontal investment affords more freedom to design the house they wish to build versus a condominium unit that comes with standard finishes upon turn over. And size-wise, these lots are also larger than the average condominium.
As for privacy, horizontal properties can vary. For example, if you live in a townhouse, your home shares one or two perimeter walls with your neighbor.
Residential property
According to Philippine Act, BP25, a residential unit refers to “an apartment, house, and/or land” which is used for residential purposes only. Under this umbrella, you may opt for condominium units; a lot; or a lot with an improvement.
Types of residential condo units
In the Philippines, the smallest type of condominium unit is the studio. Studios are characterized by an open plan layout with no divisions. On the other hand, one bedroom units afford tenants a little more privacy. As far as floor area is concerned, property finder Lamudi reports that studio and one-bedroom units in Metro Manila can range anywhere in size from 18 square meters to 90 square meters. Lower end developments tend to have a smaller footprint while luxury developments provide more space, and often, greater ceiling height sometimes extending up to a generous three meters. As far as the rental market is concerned, these smaller unit types tend to attract solo dwellers such as young professionals.
If you are looking to invest in a larger property, you have a choice between a two-bedroom, three-bedroom, or a four-bedroom condominium unit. Prospective tenants for these types of units include larger households with multiple residents such as full-nest families.
Furthermore, condominiums are not strictly limited to flat units. Loft type properties come with a second floor. This top floor typically houses the bedrooms and opens up to the space below.
Lots and lots with improvements
As mentioned above, lots give you greater freedom with the planning and design of the house you wish to build. However, it is worth noting that even before you scour the market, only Filipino citizens may purchase land. Former Filipino nationals may do so but their investment must be no more than a thousand square meters.
Compared to condominium units, however, lots or lots with houses (also known as improvements) are larger and therefore more expensive. By way of upkeep, you will also need to spend more on maintaining the interior and exterior elements of the property, on top of other tasks such as landscaping.
Office and commercial spaces
Investors can also consider real estate investment types in the office and commercial space. Office and commercial spaces have the potential to appreciate in value faster over time compared to residential property. These categories of real estate are typically located in central business districts or economic zones with demand coming from corporate clients. Investors of office and commercial spaces may also benefit from long-term lease contracts from tenants looking to rent for three years, five years, or even more.
In so far as renting out a fully-renovated unit or one that as-is where-is, investors have the option to offer the latter. In practice, corporate tenants typically tailor the interior design of a space to fit the branding guidelines and aesthetic of their business. As such, a construction period is usually provided to tenants before the actual lease contract begins. This illustrates that apart from basic property maintenance that results from the natural wear-and-tear of any property, the burden of spending on construction is one that can be passed over to the tenant.
The same applies to a commercial lot. Depending on the business type, your prospective tenant may construct the improvement themselves as in the case of say a gas station. Lot owners may also enter into a joint venture with another investor who can put money into construction and share the eventual profits with you.
Invest with Rockwell Land
Whichever type of investment you choose, Rockwell Land’s portfolio of properties all offer the signature Rockwell lifestyle with its trademark safety, security, and exclusivity.
Investors in residential properties will find well-appointed condominium developments in Metro Manila and other key cities across the Philippines. This includes Edades West, as well as The Manansala and The BenCab at Rockwell at Nepo Center. The Arton and East Bay Residences are also prime picks close to convenience.
On the other hand, Nara Residences Residential Lots offers 110 lots measuring up to 400 square meters, in addition to condominium units.
While in Batangas, Terreno South offers curated lots set against the backdrop of tree-lined, wide open spaces. While Nara Residences provides choices between condominium units or residential lots set against the progressive and culturally vibrant city of Bacolod. Also in Bacolod, those looking to put their investment in a commercial property can consider Rockwell Center Bacolod offers 21 commercial lots ranging in size from 1,500 to a generous 2,000 square meters.
Finally, if you are in the market for a vacation home, you’ll love Aruga Resort and Residences-Mactan, Rockwell’s beachfront development in one of the country’s prime diving and tourist spots.
Find the Rockwell community that best suits your investment needs. Contact Rockwell Land today to learn more.