Before You Purchase a Condo, There Are Four Things You Should Know | Bitcoinnewses | Have you given any thought to the possibility of purchasing a condominium? The cost of residential land has skyrocketed in many major commercial districts, making the purchase of a condo unit a more financially feasible option for those who want to make the city their permanent home. Condominiums offer a shorter commute to and from work, despite the fact that individual units are often smaller than most houses that stand on their own. In addition, they are typically situated in close proximity to a variety of contemporary conveniences, including stores, supermarkets, entertainment complexes, and banks. Even better, most condominiums come standard with a variety of different recreational facilities and amenities to choose from. This contains indoor and outdoor swimming pools, fitness centers, small parks, and function rooms.
On the other hand, owning a condo is not entirely analogous to owning a house along with its accompanying lot. Prospective buyers who are interested in purchasing a condo should be aware of a few key distinctions. Because of this, kids will have a better knowledge of and appreciation for the investment that they have worked so hard to obtain.
In particular, before purchasing a condo, there are the following four things you should be aware of.
- Condominiums Can Also Be Owned By Individuals From Other Countries
Because of the country’s restrictive regulations regarding property ownership, it is illegal for foreigners to own land in the Philippines. Condominium units, on the other hand, are available for purchase outright by these individuals. The term “foreigner” encompasses those who were born in the Philippines but have since given up their citizenship to become citizens of another nation. This is stated in Republic Act 4726, which is most commonly referred to as the Condominium Act.
Take note that there are restrictions placed on the amount of foreign ownership that can be held in condos. The Condominium Act has a provision that stipulates the maximum amount of foreign ownership in any condominium development must not exceed forty percent.
- Ownership of a condominium is restricted to the individual unit and a proportional share of the common areas.
The best way to make the most of a piece of real estate is to develop it into condominiums, which are excellent investments. Condominiums have the capacity to house hundreds or thousands of individual owners within the same space, as opposed to the more conventional ownership model of one person per property. Condominiums typically have multiple storeys, which allows for an unlimited number of tenants to occupy the same space on the land at any given moment.
Condominium unit owners are not permitted to purchase land; rather, they are granted ownership of the condominium unit itself. Typically, a purchase will involve either a studio or a property with one, two, or three bedrooms. According to the dictionary definition, ownership only extends as far as the four (or more) walls that enclose a unit. The authorized condominium homeowners association owns a condominium complex’s various common areas, which include sidewalks, lobbies, and amenities. These areas include any and all facilities (HOA). The Homeowners Association (HOA) is the legal body that is entrusted with managing the property and ensuring that it is maintained. Most crucially, the homeowner’s association owns the property as well as the common amenities of the condo complex.
- The Payment of Dues to Homeowner Associations Is Both Inevitable and Required
Homeowners are required to pay what are known as “association dues,” which is a monthly cost, to the HOA in order to ensure that the aesthetics and functionality of the entire condominium complex are maintained. The HOA’s administrative and maintenance operations will be funded by the money that is collected from members. It takes care of the complex as a whole in terms of its budget for repairs and upkeep. In addition, the monthly association dues are sufficient to pay the salaries and wages of condominium employees such receptionists, security guards, maintenance workers, and administrative staff members.
The amount owed is determined on a per-square-meter basis. This indicates that the owner of the unit is responsible for paying a fixed charge that is multiplied by the unit’s area measured in square meters. It makes no difference whether there are people living in a particular unit. The homeowner’s association will collect association dues from each unit, regardless of whether or not the unit is occupied.
- Condominiums have a potential lifespan of more than half a century
There is a widespread persistence of a misconception that, if believed, might discourage prospective purchasers from making a purchase. It is stated that condominiums in the Philippines can only remain in operation for a maximum of fifty years. After this term has passed, any unit owner may submit a petition to the HOA requesting that the property be sold and the proceeds be divided. The Condominium Act has been interpreted in a way that gives the impression that condominiums are uninhabitable after their owners reach the age of fifty. This reading appears to be incorrect.
In point of fact, in order for a group of owners to make a request for the partition of the property, they must first satisfy all three of the requirements outlined in section 8c of the Condominium Act. These include:
The duration of the project is over 50 years.
The fact that it is out of date and not cost effective
Condominium owners who control more than 50 percent of the building are opposed to any additional repairs or rehabilitation work being done on the project.
Only if a condominium satisfies all of the qualifications listed above can an ownership group submit a petition to the HOA. After that, and only then, would they have the ability to request that the HOA sell the property and then split the proceeds among the shareholders.
Are You Planning to Purchase or Sell a Condominium? Let OhMyHome Help
Do you require assistance in either purchasing a condominium property or selling or renting out the unit you already own? Ohmyhome is here to assist you in obtaining the most advantageous pricing options. Visit Ohmyhome Philippines to have a deeper understanding of the nuances involved in purchasing a condominium as an investment. To stay up to date with the most recent happenings in the Philippine real estate market, you may also follow us on Facebook, Instagram, or YouTube and subscribe to our channels there. Downloading the Ohmyhome mobile app for your iOS or Android device will provide you with even more ease.
Photo by Nadine Shaabana on Unsplash
