House and Lot vs Condo for OFWs: Which Should You Buy?

Quick Comparison Table

Before we dive deep, here's the high-level comparison:

True Cost of Ownership

The purchase price is just the beginning. Here's what you'll actually pay over 10 years:

Condo: Hidden Costs

Monthly Association Dues:

• P50 - P150 per square meter per month
• A 30 sqm unit = P1,500 - P4,500/month
• A 50 sqm unit = P2,500 - P7,500/month
• 10-year total: P180,000 - P900,000

What dues cover:

• Building security (24/7)
• Lobby and common area maintenance
• Elevator maintenance
• Garbage collection
• Swimming pool, gym (if applicable)
• Building insurance
• Reserve fund for major repairs

What dues DON'T cover:

• Your unit's aircon maintenance
• Interior repairs (plumbing, electrical inside unit)
• Appliance repairs
• Parking fees (often separate)
• Special assessments (major repairs, renovations)

House & Lot: Hidden Costs

Subdivision Dues (if applicable):

• P500 - P3,000/month (much lower than condos)
• Covers: Gate security, road maintenance, common area lighting
• 10-year total: P60,000 - P360,000

Maintenance You Handle:

• Lawn/garden care: P500 - P2,000/month (if you hire)
• House repairs: Variable (roof, plumbing, electrical)
• Septic tank cleaning: P3,000 - P5,000/year
• Pest control: P2,000 - P5,000/year
• Exterior repainting: P30,000 - P100,000 every 5-7 years

Real Property Tax (RPT):

• Both condos and houses pay RPT
• Houses typically have higher assessed values = higher RPT
• Metro Manila: 2% basic + 1% SEF = up to 3% of assessed value per year
• Provincial: 1% basic + 1% SEF = up to 2% of assessed value per year
• Note: Assessed value is typically 20-50% of market value

10-Year Cost Comparison Example

Let's compare a P4M condo vs a P5M house & lot:

The condo looks cheaper — but wait. What about appreciation?

Appreciation & Investment Value

The Land vs Building Reality

Here's the fundamental difference that most buyers don't understand:

• Land appreciates — there's a finite supply, and demand grows with population and development
• Buildings depreciate — they age, need repairs, and eventually need replacement

When you buy a house & lot, you own both the land AND the building. When you buy a condo, you own only the unit (the building portion) and a fractional share of common areas.

Appreciation Scenarios (10 Years)

House & Lot in Growing Suburban Area:

• Land appreciation: 5-10% per year
• Building depreciation: 2-3% per year
• Net result: 3-7% annual appreciation
• P5M house → P7M - P10M in 10 years

Condo in Prime Urban Area (BGC, Makati):

• Location premium keeps value high
• Building depreciation offset by scarcity
• Net result: 2-5% annual appreciation
• P4M condo → P5M - P6.5M in 10 years

Condo in Non-Prime Area:

• Building depreciates without location premium
• Oversupply in many areas
• Net result: 0-2% or even negative
• P4M condo → P4M - P5M in 10 years (if lucky)

Rental Yield Comparison

If you're buying for investment, rental yield matters:

Condo Rental Yield (Urban):

• Gross yield: 4-7% per year
• P4M condo renting for P15,000 - P23,000/month
• After dues and vacancies: 3-5% net yield

House & Lot Rental Yield:

• Gross yield: 3-5% per year
• P5M house renting for P12,000 - P20,000/month
• After maintenance and vacancies: 2-4% net yield

Condos typically have higher rental yields but lower appreciation. Houses have lower rental yields but better long-term appreciation. Choose based on your investment timeline.

OFW-Specific Considerations

This is where it gets practical. As an OFW, you're managing property from abroad. That changes everything.

Remote Management: Condo Wins

Why condos are easier to manage remotely:

• Building admin handles common area issues
• Security is built-in (no need to arrange separately)
• Tenant issues can be escalated to building management
• No lawn, no exterior maintenance
• Utilities are straightforward (no septic, no water tank)

House & lot remote challenges:

• Need a caretaker or trusted family member
• Lawn overgrowth, pest issues if unoccupied
• Security depends on subdivision or your own arrangements
• Repairs require finding and supervising contractors
• Vacant houses attract squatters in some areas

Family Use: House Wins

If your family will live in the property:

• Kids need space to play — houses provide this
• Extended family can visit without cramped quarters
• Parking for multiple vehicles
• Room for pets (most condos restrict this)
• Growing family can expand the house

Retirement Planning

If you plan to retire there:

• House & lot gives you long-term flexibility
• Land value will have appreciated by retirement
• Space for garden, hobbies, extended family visits

If retirement is uncertain:

• Condo is easier to rent out or sell
• More liquid asset if plans change
• Lower commitment and maintenance burden

Lifestyle Factors

Condo Lifestyle

Pros:

• Amenities (pool, gym, function rooms) included in dues
• Security and convenience
• Urban location = close to work, malls, hospitals
• Low maintenance lifestyle
• Community events and social opportunities

Cons:

• Limited space (30-80 sqm typical for affordable units)
• No private outdoor space
• Noise from neighbors (walls, floors, ceilings)
• Pet restrictions
• Parking limitations and extra fees
• Rules on renovations, guests, noise

House & Lot Lifestyle

Pros:

• Private outdoor space (garden, garage, terrace)
• More room for family, guests, storage
• Freedom to renovate, expand, customize
• No shared walls (more privacy)
• Pets welcome
• Parking for multiple vehicles

Cons:

• You handle all maintenance
• Usually suburban = farther from city center
• Commute times if working in the city
• Flooding risk in some areas
• Security is your responsibility (unless in a good subdivision)

The Commute Question

Many OFWs buy house & lot in Cavite, Laguna, or Bulacan because it's affordable — but forget about commute times. If the property is for family who work in Metro Manila:

• A P3M condo in Pasay may be better than a P4M house in Imus
• 3-4 hours daily commute = lost time, stress, transport costs
• Consider the total cost including daily commute expenses

Financing Differences

Pag-IBIG Loans

Both condos and house & lot are eligible for Pag-IBIG financing. Key differences:

• Condo: Must be from a Pag-IBIG-accredited developer
• House & lot: Can be developer or private sale (with more requirements)
• Loan limits: Up to P6M for regular program
• Same interest rates for both property types

Bank Loans

Condo considerations:

• Some banks have minimum unit size (usually 25-30 sqm)
• Older condos (20+ years) may have lower LTV ratios
• Studio units may have stricter requirements

House & lot considerations:

• Clean title verification is critical
• May require additional lot documentation
• Some banks prefer subdivision properties over standalone lots

In-House Financing

Both condos and house & lots from developers offer in-house financing. Terms are usually:

• Higher interest (12-18%)
• Shorter terms (5-10 years)
• Easier approval (good for OFWs with non-traditional income proof)

Which Is Right for You?

Scenario 1: Single OFW, Investment Focus

Recommendation: Condo

• Easier to rent out from abroad
• Higher rental yield in urban areas
• Lower management burden
• More liquid if you need to sell

Scenario 2: OFW with Family in Philippines

Recommendation: House & Lot

• Family has space to live comfortably
• Kids have room to play
• Family can handle day-to-day maintenance
• Long-term appreciation for family asset

Scenario 3: OFW Buying for Future Retirement

Recommendation: House & Lot

• Buy in a location you want to retire in
• Land value will appreciate while you work abroad
• Rent it out until retirement
• Have flexibility to expand or renovate later

Scenario 4: OFW with Limited Budget (Under P4M)

Recommendation: Condo

• Can get a decent studio/1BR in a good location
• House & lot in this range is usually far from Metro Manila
• Better to have a small condo in a good location than a house in an inconvenient area

Scenario 5: OFW Unsure About Staying Abroad

Recommendation: Condo

• More liquid — easier to sell if plans change
• Lower commitment and ongoing costs
• Can upgrade to house & lot later if needed

Scenario 6: OFW with Pets

Recommendation: House & Lot

• Most condos restrict or ban pets
• Dogs need outdoor space
• No neighbor complaints about barking

The Bottom Line

There's no universally "better" choice. The right answer depends on:

1. Your purpose: Investment vs. family home vs. retirement
2. Your budget: Total cost of ownership, not just purchase price
3. Your management capacity: Who will look after the property?
4. Your timeline: Short-term rental income vs. long-term appreciation
5. Your family's needs: Space, location, pets, schools

Related Guides

• OFW Condo Buying Guide — Step-by-step guide to buying a condo from abroad
• Complete Pag-IBIG Housing Loan Guide — Finance your purchase
• How to Buy Property While Working Abroad — The complete remote buying process

Last updated: January 2026

Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. Property values and costs vary by location and market conditions. Consult with licensed professionals for your specific situation.