Many individuals nowadays desire to live in a condo, particularly in the city center, because it is at a key location. City people are more likely to stay in condominium units since it provides a metropolitan lifestyle, which is their desire given their lifestyle preferences. Condominium living is popular not just with millennials and young people who consider themselves city residents, but also with those who work downtown. If your curiosity is sparked or you’ve been thinking of buying a condo soon, in this article we’ll give you the list of things you should know about condominiums and owning one.
Types of Condo Ownership
The first thing you should know about condominiums is its ownership types. After all, condominiums are very valuable properties and sells at a significant price.
In the Philippines, there are two categories of “condo ownership”.
The first type of ownership is leasehold. This is a sort of restricted possession agreement that lasts around 50 years, after which you have the option of renewing the lease for another 25 years or returning the property to the developer/landowner, you are acquiring the right to live in the condo unit for a specific amount of time. It’s the equivalent of prepaying 50 years of rent.
This sort of condo ownership may make strategic sense for you. Simply read the leasehold limitations to understand who is responsible for maintenance and repairs, as well as what is included in the monthly payments, and the important is you know the rights of condominium unit owners in the Philippines.
Depending on your requirements and goals, Leasehold has benefits. If you’re an investor looking to generate money by renting out many apartments, Leasehold can be a viable alternative for you.
Is wherein the unit is permanently yours as the owner. Your children or other legal heirs will become the owner after your death, but you are allowed to inhabit it for as long as you choose.
The Condominium Certificate of Title attests to a condominium’s freehold ownership (short for CCT).
It is proof that you are the condo unit’s owner. It includes details such as the address of the unit, its floor number and unit number, its size, and its owner.
The Register of Deeds in the province or city where the property is located maintains a record of the CCT.
Once your condo unit has been paid in full, you will receive your CCT. The title will be used as security by the bank if you take out a loan to pay for it.
Leasehold vs. Freehold Ownership
Legal words that characterize the form of ownership of a property by the individual owner include leasehold ownership and freehold ownership. In leasehold ownership, the apartment or condo unit on the property is leased to the condo owner for a certain tenor (lease time), while the original owner/freeholder retains ownership of the land. In most circumstances, the lease tenor is 99 years or longer.
The term “freehold” denotes ownership of both the building and the surrounding land. Compared to leasehold ownership, freehold ownership offers more certainty about ownership, more freedom when selling the property, and easier access to mortgage financing. If money is tight, leasehold ownership makes sense; otherwise, freehold ownership is always preferable.
3 Things to consider when buying a Condo
Purchasing a house should be an exciting journey full of memories. It will be a significant choice. There are several options available when opting to purchase a property. A condominium is one option.
1. Is it the right property type for you?
A condominium unit is similar to an apartment in that you own your unit and shared amenities with other owners. Before purchasing a condo, examine whether this is the type of house you require. Are you prepared financially? Buying a condo without planning, like with anything else, might appear oppressive and unclear.
2. What are my rights as a condo owner?
Before purchasing a condo you need to know first the rights of condo units owner in the Philippines, there are a number of steps to be taken: how will you finance a condo and are you financially stable; your wish list; should you buy new or used; whom should you consult; becoming familiar with the condominium corporation and condominium; making an offer and closing an agreement; and moving in.
3. What is the quality of the condo you’re looking for?
Knowing what you’ll need in your new condominium is crucial since the apartment you pick will undoubtedly affect you and your lifestyle for years to come. Make a list of the things you’ll need and the ones you like.
What do you absolutely need and what do you not want? Exists an ideal location? How large should your condo unit be? You should think about whether this will work with all of your future goals.
10 Questions to ask yourself before buying or renting a condo
1. Is your workplace nearby?
You spend a lot of time at work each week, so there is no reason for you to waste time driving there from your condominium building. For it to be convenient for you, you need to know if your home is close by.
2. Is public transportation available nearby?
One of the best features of a condominium is its ease of access to other sections of the city, both in terms of the adjacent highways and train stations as well as the diversity of public transportation options accessible in the neighborhood. Therefore, the ideal condominiums to rent are those that are close to transportation hubs such as MRT stations, LRT stations, bus stops, or roads where jeepneys go.
3. Are there medical facilities and emergency services nearby?
You need to be able to go from your condominium to a hospital or healthcare center swiftly if you’re unwell or have a medical emergency. When shopping for a property, safety is a crucial consideration.
Much though the condo complex itself is expertly constructed and secure, it is even safer if it is nearby enough for the police and fire department to simply access it in the event of an emergency.
4. What’s the state of the unit generally?
Many of the condominiums for rent in Metro Manila are brand-new as a result of the recent real estate boom, while others may already have been occupied (and hence, slightly used). Check the property out if the latter is the case. A home that requires significant repairs or has ongoing issues might not be the greatest investment for the price you’re being asked to pay.
5. Is it furnished or not?
Rent and selling price for fully furnished condo units is often a little bit more than for bare ones. In the Philippines, completely furnished apartments come with everything you need, including a bed, sofa, fridge, stove, microwave oven, washing machine, dining table and chairs, TV, and sometimes even an Internet connection, working phones, and a cable subscription that has already been placed.
On the other side, semi-furnished apartments could just come with the essentials, such as a bed, fridge, stove, and, if you’re lucky, a TV and a washing machine. Choosing a semi-furnished apartment makes more sense if you’re not the sort to cook at home or binge-watching TV.
6. Do you understand every rule?
As a condo owner, to make sure you are receiving the right condominium for you, it is vital to know everything before signing the rental agreement, from if dogs are allowed to whether there are specific hours for guests.
You must read your rental contract carefully before signing anything, no matter how insignificant it may appear to you. Renting a condominium is a commitment, and you risk losing money if you agree to conditions that you later find to be unfavorable.
7. What kind of people live nearby?
Since there is only a wall between the apartments, condominiums are especially sensitive to noise. It is best to find out from the unit owner or the rental agency whether the other condominium unit owner are amenable to noise and whether you enjoy having visitors over. Knowing whether your neighbor enjoys hosting parties or bringing guests over is preferable if you are the one who is sensitive to noise.
8. How is the management of the property?
The property management of the condominium must be on top of the necessary services every tenant needs, from garbage disposal and electrical maintenance to lock changes and air conditioning unit cleaning. After all, they are being compensated for doing so.
Property management must not be doing a very good job if it takes two weeks for them to reply to a request to replace a broken shower or blocked toilet, in which case the services are not worth the condo fees you are paying.
9. What amenities are offered?
It is vital to know whether the condo facilities are worth your money or whether you should choose a unit with simpler features because they are frequently included in the monthly rent you will pay.
However, let’s face it; with almost every condominium unit in Metro Manila offering similar amenities, no one is as awestruck by swimming pools, pocket gardens, and gyms any longer. You could be better off moving on to the next listing if the landlord is overcharging you for the amenities of the property.
10. Is the location well-secured?
When renting, security is virtually a deal breaker for you, especially if you’re considering condominium projects that are up-to-date and well-known. The security of the condominium may not be as tight as you’d think if you observe the guards carelessly let every vehicle onto the property without verifying who they are. In addition, a respectable condo will require its security guards to accompany each delivery person to the apartment they are headed for.
Rights of Condominium unit owners in the Philippines
On June 18, 1966, the Condominium Act, also known as Republic Act No. 4726 (RA 4726), was enacted, allowing people to co-own land in addition to having full ownership of their unit. This legislation also outlines the extent of their authority over the acquired unit. In order to prevent developers or sellers from taking advantage of them or deceiving them about their units, the rights of buyers are clearly defined.
The master deed may specify that the property must be presented and made available to other unit owners before being made available to other interested buyers. Condominium owner exclusive rights, such as finishing or decorating his own unit, selling or disposing of his/her unit, and common area regulations are also included.
An enabling deed known as a condo’s master deed is one that must be registered in the Register of Deeds and noted in the title of the property. It must include the following information: a description of the land; a description of the building; and a description of the common spaces.
As long as they do not own the property on which the apartments are built, foreign nationals may likewise buy apartments.
Condominiums… Are They a Good Investment?
A condominium could be a good investment for you as long as you figure out it is what you want and need. It is a safer sector of real estate investment and is a wise choice for risk-takers. Condominium investment is also ideal for long-term investors since the longer you own it, the greater your return on investment.
Many individuals invest in condominiums because they want to see their money rise in value over time. Condominiums are one of the finest investments if you want to make a lot of money. After all, they provide a consistent return on investment as property values rise over time. As long as you know the rights of condominium unit owners in the Philippines.