Condominium and landed residential properties are among the top contenders when you look at comfortable housing.
In fact, you can see these two types of residential properties mushrooming up almost everywhere across cities.
Both these types of properties have their unique set of advantages and demerits. But how do you decide what’s best
Advantages of Condominium
Let us first turn our attention to a condominium.
The biggest advantage is the fact that you can stay right in the heart of the city and yet be comfortable but the good news does not end there.
1. Better Security
The overall security in a condominium is much better. Compared to landed homes, the risks are much lesser here.
You have security guards on duty 24×7. More importantly, this is a multiple-tiered security system.
As a result, it will never be that simple for trespassers to enter.
Instead, it acts as a deterring force. There are CCTVs around the entire building, and the outsiders have to deal with the guards, front desk staff and still more guards before even reaching your floor.
2. Variety of Facilities
This is perhaps one of the biggest pros about a condominium. They invariably come well equipped with a variety of facilities like swimming pool, gym and training facilities.
The best part is you are not directly responsible for maintaining this.
These are common properties, and your responsibility often ends with a basic maintenance fee.
The management normally appoints a complete team for their regular upkeep and proper functioning.
3. Better Return of Rental Income
The condos are invariably very strategically positioned. It is invariably located close to the downtown and often right at the heart of the town.
That means the demand for rentals is also fairly reasonable. For a lot of people who may not be able to cough up the expense of buying one can easily rent these.
Given the supply-demand matrix, these can be an excellent source of rental income. So even if you don’t want to buy it to stay, it can be a great investment for churning out additional income.
4. Better View
Invariably condos are in high rise buildings. That makes the deal even better. You can always be sure of the view.
Compared to landed property, the condos invariably have better views, and this always spikes up both the rental rates as well as the resale value.
5. Equipped With Common Areas
This is invariably another major plus for condos. Most of these are equipped with common areas like conference rooms, low key banquet arrangement, barbecue areas and grocery stores.
While this works towards everyone’s advantage, there is no additional payment for these.
The fact that these are common also means the management looks after their maintenance and the condo foots the bill as a single unit.
Disadvantages of Condominium
But that said there are some limitations too. Essentially the condominium entails sharing a lot of common area with several people.
That means everyone’s concerns and preferences need to be kept in mind. So there are some demerits too.
1. House Rules
Condominiums, in general, have their own set of rules and regulations. Normally, this is undertaken in a structured manner, and you generally have a management body in place to take care of it.
This means you cannot have everything your own way though there may not be very strict implementation. This may at times be a disturbing factor for many.
2. Higher Density
The placement of units in a condo is very close to each other. The idea is to cram in as many possible units in one building.
These as a result invariably become high-density properties. Also, real estate space is rather scarce in the middle of a city, so the developer tries to optimize the profit quotient by maximizing the sale of the built-up unit.
3. No Attached Parking
The parking space is common in case of a condominium. Normally the ground floor or the basement houses the parking area. So you will never have the joy of driving into your private porch or driveway.
You will always have to take the lift or the stairs to your condo.
4. Less Place to Dry Your Shirts
So as you know rather well, open space is always at a premium in a condo. At the most, you have an open deck so the space available to dry your shirts and other laundry is fairly limited, and you will need a quality washing machine and dryer for hassle-free cleaning of clothes.
5. Cannot Extend Your House
The exterior façade of a condo cannot be changed. So, you cannot extend your house as per your wish.
While you can make some minor alterations in the interior of the house but this does not involve anything major so to say.
6. Restricted Renovation
Similarly when you are looking renovating a condo, there are several restrictions that you have to adhere to.
Even the timings when people can work is subject to house rules of a condo. The flexibility is way limited in this case.
7. Not Preferred by Pet Owner
Pet owners need to be careful. Not all condos allow pets, and even if they do, the lack of open space can be a huge deterrent. Not all pets can be comfortable with limited mobility.
8. Need to Wait for Lift
You do not have personalized facilities in a condo. So you are sharing a lift with the other members of a condo too.
So when you are traveling to and from your house, many times you may have to wait for your turn in the lift.
9. No Land
The biggest problem of condo is, however, the lack of land. When you buy a condo, it is only the specific condo square feet that you own. You don’t have any right on a single inch of land beyond it.
10. Need to Pay Maintenance Fee
Irrespective of what services you use, you will have to pay the maintenance fees regularly.
You cannot opt out saying you have no time for the swimming pool or the gym. The payment is mandatory in this case.
11. Facilities Maintenance depended on the Management
Since the facilities are common, the management normally appoints staff for maintenance.
While the benefit is that you do not have to bother yourself with the upkeep, the problem is that you are dependent on others. Often the quality of service suffers.
Advantages of Landed Property
Now moving onto landed homes, let’s analyze the pros and cons of this type of property.
The huge space that is available is undeniably the biggest advantage of these houses. The entire space is yours, and this gives you a greater degree of flexibility.
1. Bigger Compound
Normally landed houses have a reasonable amount of garden space around the house. This does not just provide the much needed green belt but also adds to the available compound area around the house.
2. Better Appreciation Value
You can, therefore, hope for a much greater return on investment on your property. Since buyers are getting more than just a house, the relative appreciation rate is higher compared to a condo.
3. More Privacy
A landed house also promises a much better quality of life with better privacy. You are not sharing any part of your living space with anyone. The entire house and the area around is at your disposal, and no one can question your movement.
4. Less Restriction
Your house rules are what you create. So you do not have to face the problem of adhering to pre-established house rules.
You are at liberty to undertake any type of function, play music, dance or whatever you wish within your boundary without any prior permission.
5. Can Do Extension
This extends to renovation work as well. Whether you want to extend your house in any direction or make any alteration, you are the boss.
As long as it fits the house plan and gets an architect’s approval, you are free to make any type of change in your property.
6. No Maintenance Fee
While the price of a landed house might be slightly more than a condo at times, you do not have to shell out maintenance fees at regular intervals.
You can create facilities or buy tools to work out like a treadmill or cross-trainer based on your necessity.
7. More Indoor Compound For Activities
Moreover there is sufficient indoor compound available. So you can make alterations and adjust the place up to your needs and requirement.
8. Can Wash Your Car
Parking your car is never a problem in a landed house. You can park more than one cars without worry. You can wash them as per your convenience.
Splash water all over or just use a jet spray. So you will never have your neighbour walking across the fence asking you not to do so as it is against the house rule.
This is truly your house where you make the rules and even decide who adheres to it.
The cardinal advantage of a landed house is the convenience in every aspect. Whether you are looking to expand, renovate, add features or simply chill out, your landed house always gives you the option for all of that and more.
The ample space also adds to the overall convenience element and makes it a desirable buy. Whether you have young children or old parents living with you, this type of property is extremely convenient for all kinds of age group.
10. Less Density
Landed homes are typically a little away from the city center. Also, one unit has just one house. So the relative density is much less, and you can take advantage of the additional space all around.
The compound area around the house further creates a distance and reduces the density per square feet even more.
The general layout, therefore, comes across as well spaced out houses with considerable distance in between them.
Disadvantages of Landed Property
There are always two sides of a coin.
While the landed homes do have some distinct advantage compared to a condominium, there are some factors that could act as a deterrent.
When you are investing in a landed house, you must always keep in mind these challenges.
1. Higher Price
The landed house generally comprises of a land and developers only able to build limited units of landed property on the land.
So, this often adds to the overall cost of the house to a large extent. As a result, the total price is significantly more than a condo.
2. Lower Rental Yield
In case you are planning to invest in a landed house to realize rental income, it may not be the best idea.
Remember that landed houses have more space, but nowadays, many people prefer to rent a condo with all the provided facilities and security.
Moreover, due to landed property price is much higher, thus the rent yield on such property will always be lower.
3. No Facilities
If you are used to the gym, swimming pool and the recreational rooms at your condo, a landed house can be more of a disappointment for you.
You have to understand that these come with absolutely no facilities and for even the most basic ones, you have to set it up from scratch. This will be an expensive affair.
For example, if you wish to go for gym, you may need to sign up a gym package in the fitness center.
The cost of that will be higher than what you will pay as monthly maintenance fees in a condo.
So whenever you get into an expense like that, you will have to calculate the relative cost to return ratio.
4. Hotter on the 2nd Floor
Condos generally are skyscrapers with insulated rooftops. But the landed house is at best 1-3 storeyed. The top floor of the house, as a result, becomes really hot because the roof absorbs the entire heat.
So, you have to undertake expenses to insulate the house properly and ensure it is not vulnerable to the vagaries of nature.
Normally the bedrooms are on the upper floor, and that is most times very uncomfortable and hot.
Therefore, whether you are looking for a condo or a landed house, your objective is paramount.
Each of these property variants has distinct pros and cons. But what matters is you have to match these with your requirements.
That will help you identify the best property which will yield the most attractive return for you.