Is Buying a Condo in Baguio Worth It? Pros and Cons for Investors

By Timons Cabansi

Ah, Baguio City—the Summer Capital of the Philippines. With its cool climate, stunning views, and vibrant culture, it’s no wonder that Baguio is a top choice for real estate investments, and this is also my hometown. But here’s the million-peso question: Is buying a condo in Baguio worth it? (NOW!)

Condos in Baguio are popping up like mushrooms after a rainy season, promising investors a slice of the city’s charm and potential. But before you dive in, it’s important to weigh the pros and cons. After all, real estate is a big commitment, and you don’t want to end up with a sakit ng ulo instead of a profitable investment.

In this article, we’ll break down the pros and cons of buying a condo in Baguio, so you can decide if it’s the right move for you. So, grab your kape, and let’s dive in!

Why Baguio City is a Smart Investment

Baguio City is more than just a tourist destination—it’s a thriving real estate market with plenty of potential. Here’s why you should consider investing in Baguio:

1. Cool Climate: Baguio’s cool weather is a major draw for both locals and foreigners, making it a popular destination for vacation homes and rentals. Baguio is not cold enough, according to some, but I argue that it is hotter in the lowlands. Baguio’s summer temperatures only average 28 degrees, whereas in other parts of the Philippines, they can reach 45 degrees.
2. Scenic Views: From the iconic Burnham Park to the breathtaking views of the Cordillera Mountains, Baguio offers some of the most beautiful landscapes in the Philippines.
3. Growing Economy: With the rise of BPO companies, the educational center of the north, and tourism, Baguio’s economy is booming, creating opportunities for real estate investors.
4. Affordable Prices: Compared to Metro Manila, properties in Baguio are more affordable, offering better value for your money. We can only compare this in some parts of affluent Metro Manila areas, considering Baguio is ranked 6th among the priciest cities outside the Metro.

Pros of Buying a Condo in Baguio

1. Convenience

Condos in Baguio are often located in the city center, close to amenities, transportation, and tourist attractions.

• Actionable Tip: Choose a condo near popular spots like Session Road, Burnham Park, or SM Baguio for maximum convenience.

Philippine Scenario:
A young professional buys a 1-bed condo near Session Road for ₱5 million. She enjoys the convenience of being close to restaurants, shops, and tourist spots.

2. Low Maintenance

Condos require less maintenance, as most repairs and upkeep are handled by the building management.

• Actionable Tip: Look for condos with good building management to ensure your property is well-maintained.

Philippine Scenario:
A retiree buys a 1-bedroom condo in Baguio for ₱3 million. He enjoys the low-maintenance lifestyle, as the building management takes care of repairs and upkeep.

3. Affordability

Condos are generally more affordable than houses and lots, making them a good option for first-time buyers. These are accurate in Baguio’s non-city center condo area, as I am aware that city center condos have gotten crazily expensive.

• Actionable Tip: Consider pre-selling condos, which often come with lower prices and flexible payment terms.

Philippine Scenario:
A couple buys a pre-selling 2-bedroom condo in Baguio for ₱6 million. They take advantage of the lower price and flexible payment terms.

4. Rental Income Potential

Baguio is a popular tourist destination, making it a great location for vacation rentals.

• Actionable Tip: Furnish your condo with Instagrammable muebles to attract tourists and maximize rental income. Yes, it is an added upfront but you need to stand-out on your competitors.

Philippine Scenario:
An investor buys a 2-bedroom condo in Baguio for ₱6 million. He furnishes it and rents it out to tourists, earning a steady income.

Cons of Buying a Condo in Baguio

1. Limited Space

Condos offer less space, both indoors and outdoors, which can be a drawback for families or those who value privacy.

• Actionable Tip: Choose a condo with a balcony or rooftop garden to maximize outdoor space.

Philippine Scenario:
A family buys a 2-bedroom condo in Baguio for ₱8 million. They enjoy the convenience but find the limited space challenging.

2. Rules and Regulations

Condo living comes with rules and regulations, such as restrictions on renovations and pet ownership.

• Actionable Tip: Review the condo’s rules and regulations before buying to ensure they align with your lifestyle.

Philippine Scenario:
A pet owner buys a condo in Baguio but later discovers that pets are not allowed. She has to make alternative arrangements for her furry friend.

3. Monthly Fees

Condo owners have to pay monthly association fees, which can add up over time.

• Actionable Tip: Factor in monthly association fees when budgeting for your condo purchase.

Philippine Scenario:
A condo owner in Baguio pays ₱5,000 in monthly association fees, which add up to ₱60,000 per year.

4. Market Saturation

With so many condos being built in Baguio, the market can become saturated, making it harder to sell or rent out your property.

• Actionable Tip: Choose a condo in a prime location to stand out in a competitive market.

Philippine Scenario:
An investor buys a condo in a less desirable location and struggles to find tenants.

Takeaway:

Is Buying a Condo in Baguio Worth It?

Buying a condo in Baguio can be a smart investment, but it’s not without its challenges. If you value convenience, low maintenance, and affordability, a condo could be the right choice for you. But if you’re looking for more space, privacy, and flexibility, you might want to consider other options.

So, whether you’re dreaming of a cozy condo in the city center or a spacious house in the suburbs, now is the time to explore the real estate market in Baguio City. Also, ahemm, I would not hesitate to do an ad on my blog that if you are looking for a property in Baguio or North Luzon, contact me now.

Frequently Asked Questions (FAQs):

1. Is a condo in Baguio a good investment?
Yes, especially if you plan to rent it out to tourists. Baguio is a popular tourist destination, making it a great location for vacation rentals.

2. How much does a condo in Baguio cost?
Condos in Baguio typically range from ₱3 million to ₱10 million, depending on the location and size.

3. Can I rent out my condo in Baguio?
Yes! Baguio is a popular tourist destination, making it a great location for vacation rentals.

4. What’s the biggest drawback of buying a condo in Baguio?
The limited space and monthly association fees can be a drawback for some buyers.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Always consult with a professional before making any decisions.

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