Individual Homes vs. Project Development

Individual Homes vs. Project Development

A home buyer often has to make a choice whether he goes for an
individual home offered by individual owners or take the project
development instead. There are pros and cons on this. With individual
homes, ready for occupancy is the primary advantage but in most cases a
big cash out is necessary and prices are generally higher than project
developments. While project developments usually take time to build by
about 6 to 12 months depending on the developer concerned, the base
price is relatively low and so designed to allow buyers to be a part
investor of the project development rather than a mere user of the
property. In our experience in Cebu project developments, a developer
starts earth moving and as soon as it secures a license to sell, it
offers the slots for sale at an attractive investor’s price of say, P2
million. Usually, 6 months after, it increases its price by 15% and
after another 6 months, another 15% increase, and so on, so that by the
end of one year and a half, which is the average time to complete a
project, the price, of 2 million would become 3 million. Those who are
too cautious by buying only when units are completed are deprived of
this investment and will be forced to pay the bigger price.

In contrast to individual homes, project development offers the
advantage of a one year warranty from the developer to correct any
construction defect such as cracks, etc., to the satisfaction of the
buyer. This is usually not existing in buying individual homes, and if
it does, adherence to contract is usually difficult to implement.
Developers especially those belonging to the top corporation have a name
and reputation to protect giving buyers added assurance and protection.

But the most benefit one can get in project development is the quality
of living that has far improved from the developers of yesteryears. Gone
are the days when developers merely build subdivision roads, security,
facilities and that’s it. The trend has come for a master planned
community wherein every part of the subdivision is put to optimum use
such as landscaped gardens, playground, clubhouses, tennis and
basketball courts, open spaces, water treatment facility, and for high
end development, underground electrical, telephone and cable wires,
swimming pool, landscaped entrance, exquisite clubhouse, jogging trail,
and many more which may reflect the quality of life one truly deserves.