Foreclosed Condo vs House vs Land: Which Option is Best for You?

Foreclosed condominiums, houses and lots, and lot-only deals are among the most popular property options today. They can be ideal for personal use or income generation, or both. 

Still, they have key differences that will make you think hard about which one is best for you. To answer this question, you also need to consider other factors throughout your buying journey. 

But first, let’s get to know your options:

A Private Home

Better privacy is one of the advantages of owning a house and lot. This is especially true if you choose a single-attached or detached unit. Townhomes, however, share one-to-two walls with adjacent units. Hence, you can think of them as a hybrid of a family home and a condo unit. 

An Affordable Foreclosed Condo

Meanwhile, foreclosed condos are properties with below-the-market prices. These, along with pre-selling units and secondary homes, are some of the most affordable options. Like standard condo units, you can find foreclosed condos in highly accessible areas, usually in Metro Manila and provincial cities. 

It’s also worth noting that the reduced prices are partly due to the units needing some form of repairs or updates.

A Flexible Plot of Land 

Flexibility-wise, lot-only properties stand out in the market. They come in different sizes, allowing owners to have a free hand in designing their homes. Or, they can choose to generate income by leasing out the land for commercial use or building a rental property on it. 

A plot of land in provinces, especially in high-tourism areas, can also be developed into a rest house or an agri-tourism property. 

Key Differences: Foreclosed Condo vs House vs Land 

Other than how they look, these property types have differences in features and characteristics. The table below shows what to expect from each one:

  Foreclosed Condo House  Land
Condition Minor to major repairs may be required Pre-selling, brand-new, and secondary units are available Pre-selling, brand-new, and secondary units are available
  • Below-the-market TCP*
  • Downpayment
  • Monthly amortization fees
  • Maintenance fees
  • Usually more affordable than houses
  • Downpayment
  • Monthly amortization fees
  • HOA* fees (if located in a subdivision)
Ownership Unit only  House and the land it sits on Lot only 
Amenities  Shared amenities vary but usually include swimming poolsgarden, and fitness area Shared amenities vary and are often present in gated communities  Amenity access may be available if the land is in a new and gated community 
Best Traits  Usually affordable and located in the city  Bigger floor space and more privacy Lower initial cost and flexible use 

*TCP: Total Contract Price 
*HOA: Homeowners’ Association 

Factoring in Life Goals and Budget 

When deciding which property type is best for you, it’s also important to focus on what you want to achieve and what your financial capacity looks like.

Your life goals are closely tied to your lifestyle, so you should pick a property that can support your current and future needs. For example, if you plan to have a bigger family, a house and lot can prepare you for that change and a family-oriented lifestyle.

Meanwhile, those buying foreclosed condos or land for investment purposes should have a mid-to-long-term view of how the property location would evolve. If it’s expected to be populated with new structures and more people, it’s a good location that promises property demand.

Money, of course, would be crucial in your buying journey. Foreclosed condo units are often ideal for those with tight budgets, but these properties may also require extra cash to cover unexpected expenses. 

If money is not so much of a concern and you have unique property requirements, land would be the most suitable choice. It’s best for home seekers wanting to fully customize their residential space and investors looking for a property that can generate income in different ways.

Which Foreclosed Property Type is Best for You?

Generally, the most common property types would be best for the following seekers: 

Foreclosed Condo

Best for: property buyers who prefer compact living or an on-the-go lifestyle, investors with cash reserves

Since foreclosed city condos are near business hubs, malls, schools, and hospitals, they are best for those wanting to be at the “center of everything.”

However, you’ll also find foreclosures in tourist-filled areas like Tagaytay and Cebu. They can be turned into vacation homes or rental properties that cater to locals and tourists alike.

Here are some foreclosed options to check out: 

House and Lot 

Best for: property buyers transitioning to family living, seekers of privacy and bigger space

A house and lot provides ample space and security features for a growing family. Additionally, it serves as a legacy that parents can pass on to their children.

Of course, this is not to say that houses and lots are exclusively for families. Young professionals can also buy a house if a spacious floor layout and privacy are top priorities. By finding a “forever home,” young seekers can likewise be prepared for life changes that may transpire in the future. 

Check here for foreclosed house and lot options in the Philippines


Best for: property buyers who value privacy, space, and customization; investors seeking a safe way to build wealth 

Finally, lot-only options offer what houses and condos can’t: freedom in exterior design. You can have your own layout, given that you follow the developer and HOA rules.

Depending on the land’s location, you can build a vacation home, a family house, or a rental property. Or, by simply leaving the property as it is, you’ll have a low-maintenance investment that could go up in price. 

Looking to invest in land? Here are some foreclosed options to consider.

Price-wise, residential lots in urbanized cities generally cost higher than those in provincial areas. The same can be said for foreclosed houses and condos. 

Once you find that property that fits the budget, make sure it also matches your needs for a smooth and fulfilling buying experience.

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