Guide to Condo Living


By Excel V. Dyquiangco

These days, more and more people—especially millennials (including millennial doctors)—are embracing independence.

They want freedom not just from the boundaries set by their parents but the freedom to measure success and happiness on their own accord.

As living proof, millennials often invest on real estate. According to the National Association of Realtors 2017 Home Buyers and Sellers Generational Trends Report, Millennials are the largest group of home buyers for the fourth consecutive year – and 40 percent of them are just under 36 years of age.

“Millennials are quite aggressive when it comes to investments and they are prepared to make or break from investments,” says Richard Thaddeus Carvajal, President and CEO of Philgems Realty Corporation and author of the bestselling book The Millennionaire.

“It is safe to say that Real Estate is one of the safest forms of investment as long as you do it correctly and you invest in the right property. If you do, you might even double the value of the property and benefit from capital appreciation.”

But for Millennials who’d like to buy a condo for themselves, here are some factors that they should consider.

1. Look for the right location. Proximity to commercial areas, downtown spaces, developing infrastructures or township does have a big impact not just on your own space but on property valuation. “It is important to invest in an area where there will be potential for growth,” says Richard.

2. Consider your life stages. If you are single, then a studio unit condominium is fine. If you plan to have a family in the next few years, a bigger condominium unit or a house is more suitable. “Therefore, know what type of property you are going to buy which will still be useful to you in the future,” says Richard. “If your investment will purely be for rent and earn from both rental income and increase in value, then you might want to consider buying few studio units in different locations instead of buying a big property. Real estate investment would usually take about 3-5 years in order to make a significant return.”

3. Have good credit scores. What’s wonderful about real estate investments is that you don’t have to shoulder the entire amount. You don’t need to have a huge investment capital. Through leveraging, a common practice in the industry, property investors need to put in only a part of the full sum that they need for the investment which is usually 20 percent. The rest of the 80 percent often comes from bank loan but of course, you need to have good credit standing in order for the bank to approve your loan. Never buy a property when you have bad credit scores as you might lose the equity you already paid for

4. Real estate has a potential for appreciation. The environment affects the future price of your investment. If a big or popular mall suddenly gets built next to your property, you have perhaps hit a jackpot. Progression increases the value of your property. “Unfortunately investing in a property that has low acquisition price doesn’t always mean a good deal,” says Richard. “Make sure the property is not prone to floods or landslide or else regression decreases the price of your property.”

5. Be financially stable. The greatest factor to consider when buying a home is your liquidity and stability. Purchasing your home comes with huge financial obligations—not to mention long term commitment. “I have seen clients that were impulsive in buying their home and they were not able to sustain their commitments because of changes in their financial situation. They were not able to factor additional cost of home ownership,” says Richard.

If you are buying a property purely for investment, remember that a rental property is not your dream home. Make sure you know the market, how to run the numbers or how to compute for the yield of returns.

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