What protects your ownership of a condo unit is The Condominium Act of the Philippines (Republic Act 4726) passed in 1966. In summary, it stipulates that if a project has been obsolete or uneconomic after 50 years, the majority owners of the common area reserve the right to stop any restoration or remodelling.
Is it true that the lifespan of a condo in the Philippines is only 50 years?
Condominiums are essentially corporations
Corporations, as mandated by Section 11 of Batas Pambansa Blg. 68, otherwise known as the “Corporation Code of the Philippines,” cannot exist for more than 50 years; hence, it follows that a condominium can only exist for 50 years.
What will happen to your condo unit after 50 years?
It’s not like you will buy a condominium property and then after 50 years, your investment will be gone, just like that. When a condominium project is fully turned over to the unit owners, it becomes just like a corporation, and you are one of the owners of that corporation if you have a unit there.
What happens to older condos?
You need 80% vote for the condo to be demolished, low rise buildings in desirable areas can be sold and torn down, and the owners can do very well financially if it is sold to high-rise developer, the unit holders also do have some land value.
Is it worth it to buy condo in the Philippines?
Condos are a great investment if you have some critical factors on your side. … So, for a full answer, yes, it is completely possible to make a good investment from real estate in the Philippines; however, there are three areas you should consider before you dive in. Let us look into these in more depth.
Is condo a lifetime?
As condos have a finite life span, at least as economic factors relative to their maintenance costs are concerned, the idea is to buy into newer complexes, where their near future expenses and therefore maintenance fees are prognosticated more accurately. The same logic applies when selling a unit.
Can you live in a condo forever?
While a landlord can clear out a rental building at any time, assuming there are no complicating rent control regulations, a condo is yours forever. …
When you buy a condo do you own it forever?
It varies by country, but you usually either own it outright, or have a proportionate interest in the entire building with exclusive use of your own apartment, Transferable 100 year leases are pretty rare in western countries, with the exception of the U.K., where you might own the building but not the land, which is …
What should you avoid when buying a condo?
15 Mistakes to Avoid When Buying a Condo
- Continue to Rent Because it’s Cheaper. …
- Wait for Prices to Fall More. …
- Wait for Rates to Get Lower. …
- Can’t Afford Your Dream Home & Decide to Wait. …
- Decide the Economy is too Scary. …
- It’s a Fantastic Home, but I need to See More. …
- It’s Priced Well, but I want a Steal.
What are the pros and cons of buying a condo?
Pros and Cons of Buying a Condo
|Build home equity||No land ownership|
|May be easier to afford than a single-family home||HOA and maintenance fees|
|Location, location, location||Abide by the HOA rules|
|Increased security||May have limited parking|
Is it a bad idea to buy a condo?
Buying a condo can be a great idea. Prices are often cheaper than for single-family homes, and many condos come with luxury amenities for their owners. And if you’re at a stage in your life when you don’t have the time or ability to do upkeep, a condo can provide a (literally) low-maintenance environment.