Pros and Cons of Living in a Condominium against living in a house

[kiz_me1109]

Hello sissies. Thank you so much for all your comments and suggestions. We decided to get the condo. Its a 1 bedroom unit in Makati. 1ride or if kaya mo, you can walk from our office na. It's only 9500 including the assoc dues.  Considering na malapit siya sa lahat (Malls, school,office,etc) mura na yun. Kami lang naman ni Hubby and our 4 year old son and the yaya. Our main concern is their security kasi sa gabi, sila lang ni Yaya.

Thanks again. Big help talaga kayo.

[bailey]

If you have young kids, living in a condo is fine because of the amenities (pool, playground, etc.). When my daughter was a toddler, we made sure there were no chairs or cabinets near the windows so she couldn't climb out. Also, for the sliding glass door leading to the balcony, we bought a pipe that would prevent it from sliding open (she knew how to unlock doors by this time), plus the yaya was instructed not to leave her at any time when we were not home. Security is also a plus in condos (although you still cannot be too trusting when it comes to the guards, neighbors, neighbors' maids and drivers, etc.).  Right now, we live in a condo. What I miss about living in a house is the space. We have yet to invite friends over because it's too tight and neighbors might complain about the noise.

[kiz_me1109]

^ you're right. I'm gonna miss living in a house by the time we  move in our condo next month. But for now, our child's security and safety is most important. =)

[agape]

i think mas mahal association dues sa condo kesa pag house.

[sima]

^ I agree.  Mas mahal ang association dues sa condominium kesa sa house.

[sima]

I found this very informative post from sis angelpat in another thread.
I-share ko lang dito:

6 things to consider before buying a residential condominium unit

A condominium project consists of land on which the project stands, the individual dwelling units and the common areas.

In the Philippines, a condominium building is any vertical development, ranging from, say, 5 to 50-stories tall comprising of, say, a hundred to 500 individually-owned units per building wherein the units share walls.

In the United States, condominiums also usually share walls, although, that is not always the case. There, many condominiums resemble what may appear to us here in the Philippines like townhouses, row houses or apartment complexes that may be only 1 to 2 stories tall. The similarity is in the extent of ownership.


1. Extent of ownership in a  condominium project
What makes a condominium project unique is not the number of stories they have or whether the units share walls or not. What makes it unique is that each home buyer owns his unit space but shares ownership and use of the common areas and there is no individual ownership of a plot of land. The entire land on which the condominium project stands is owned in common by all the homeowners.


2. Condominiums are set up like a corporation
Though, it’s not required by law for a condominium project to be set up as a corporation, the fact that all local condominium developers also target foreign buyers makes this necessary. Foreigners cannot own or co-own land in the Philippines; they can only buy into a corporation that owns land.

This, to me, is the most important thing to consider when buying a condominium unit. As a unit owner, you become a shareholder of the condominium corporation. One unit is equal to one share (that is proportionate to the size and price of your unit) in the corporation which is then equal to a proportionate vote.

If there are 500 individually-owned units in the condominium you are buying into, it means there are 499 other incorporators, with varying motivations and idiosyncrasies, who have more or less the same stake and voting power as you do. Everyone, through the condominium corporation, owns all the common areas in the condominium and the land on which the building stands.

Like in any corporation, certain issues and problems will arise that can only be decided through votes by the shareholders or unit owners. As such, some unit owners will lose and some will win. Later, I shall discuss the most important issue that condominium owners will inevitably decide on.


3. Condominium unit owners can only obtain a CCT and not a TCT
Ownership of a condominium unit is evidenced by a CCT or Condominium Certificate of Title. Unlike a TCT or Transfer Certificate of Title which is evidence of ownership of a traditional house and gives the homeowner absolute ownership of the “inside” and “outside” of his house up to the boundaries of his lot, a CCT only endows the condo buyer ownership of the “inside” of his unit. By the way, a townhouse owner is also issued a TCT that entitles him ownership of his unit and the land on which his unit stands.


4. Condominiums have a life span of 50 years
Although, the law does not explicitly say that condominiums have a life span of 50 years, it definitely implies so. Section 8c of The Condominium Act says:

That project has been in existence in excess of 50 years; that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project…

In such case, the owners can vote to have the building demolished which presents them two options:

a) Sell the land and the scrap from the demolished building, deduct the cost of demolition and divide the net proceeds among the owners, or

b) Strike a deal with the original developer or another developer to build a new condominium on their land. But until such time that the new project is completed, the owners will have to live in a temporary home which may take 2 to 4 years.

You might be laughing at this point telling yourself: “I’ll be dead by the time my condo reaches 50 years old.”

This leads us to another point:


5. A condominium is not an ideal inheritance for your children or grandchildren
By the time you pass on your condo to your heir, it may no longer be ideal for dwelling. If you ask me, 50 years is too long given the propensity of many developers to build very tall condominiums. The taller a building is, the more prone it is to the ravages of time and harsh environmental conditions, ergo, the shorter its life span. They are also the most technologically-dependent type of housing.

Short of 10 years, 40 years from now, will future buildings be using the same electrical, water or cooling systems that buildings are employing today? Will replacing these systems, even just their cables, pipes and conduits (which are mostly embedded in the walls) in a, say, 30-story condominium, be feasible? How will you replace a totally broken down elevator in such a building? Will the elevators that we have now still be the same mode for transporting residents up and down a building?

At the very least, modern condominiums today will become eyesores 50 years from now; they will be drowned out by future architectural designs.


6. Association dues is not the only expense that you will have to pay
Payment of association dues is not unique to condominiums since owners of single-detached houses in subdivisions and owners of townhouses also pay association dues for the maintenance of common areas, solid waste management, security and more. But association dues in condominiums are highest per square meter.

The following are the other expenses that you shall pay when living in a condominium:

- Realty tax on your unit
- Share of realty tax on the land on which the condominium stands
- Share of realty tax on common areas
- If you have a car and you opt to buy a car slot in the condominium, expect to pay an extra half a million pesos or more and pay additional monthly dues for it.

Given these 6 things to consider before buying a condominium unit, does it mean you shouldn’t buy a condo?

No, it does not; it depends on the lifestyle problems you want solved.

P.S. The Condominium Act aka Republic Act No. 4726

[snowberry]

^Very helpful information. It really depends on the lifestyle that you want and whether you can afford it.

I also noted that most condo buyers consider it as their investment dahil ipinapa rent.

As for me , I opt to buy a condo as second home because of the location (Makati) . Taga QC lang kami pero na trauma ako sa baha . Also, sa dami ng tao dito sa Manila , sobrang traffic and commuting to Makati  is also of the question. Ang dami ko ring tiningnan na town house pero I don't feel secure sa mga lugar . I hope hindi ako nagkamali sa pagbili  ng condo.

[younis]

"4. Condominiums have a life span of 50 years
Although, the law does not explicitly say that condominiums have a life span of 50 years, it definitely implies so. Section 8c of The Condominium Act says:

That project has been in existence in excess of 50 years; that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project…

In such case, the owners can vote to have the building demolished which presents them two options:

a) Sell the land and the scrap from the demolished building, deduct the cost of demolition and divide the net proceeds among the owners, or

b) Strike a deal with the original developer or another developer to build a new condominium on their land. But until such time that the new project is completed, the owners will have to live in a temporary home which may take 2 to 4 years.


bigla ko tuloy naalala yung sagot sa akin nung agent nung tinanong ko sya during the condo tripping, tanong ko:

Me: pano kung lumindol at bumagsak ang building?
Agent: Mam, 50 years naman po ang lifespan ng building
Me: Eh what if nga bumagsak, you never know... pano yun? san nyo kami patitirahin?

Hindi na sya nakasagot, obviously hindi naman nila concern pa kung san ka titira after mo mawalan unit kung sakaling babagsak nga ang building pag lumindol.

Then after looking at some areas, nakita namin ng husband ko may cracks na yung ibang pillars.. sabi ko na lang sa husband ko "50 years ah..". 

[WandaWits]

Thanks sisses, this is an eye opener. I used to convince my hubby to buy a condo unit & seems like these past days parang nag aagree na siya. I told him, it's not a wise long term investment pala. Just imagine how a building looks like after 20+ years. Actually, we're moving in to a condo soon (just to rent) bec of location from the kids' school.  I realized ok lang yung rent for short term but not to own esp when the kids are grown ups na.

[amethyst028]

^yup renting a condo is ok lalo na sa proximity niya sa work niyo and school ng mga bata. laking tipid sa gas and saves time sa traffic.

share ko lang, nag try ako tumingin ng condo sa may greenhills area since doon ko sana plan ipasok anak ko next school year. yung mga new condos ang liliit ng cut tapos mahal 30sqm. for 2.3M mga ganon. i saw some old ones mga nasa 2.5-2.8M 55-64sqm. maliit pa rin siya kasi ang ginawa lang nilagyan ng stairs and mababa ang headroom parang hindi ok ang flow ng air sa loob ng unit. plus of course the association dues na nasa P3500 per month and p3000 parking. the building is 6-8yrs. old pero pangit na ang loob. the hallway is ugly, the swimming pool ang dumi, gym pangit na din. so ano pa yung babayaran ng p3500 na assoc dues, parang not worth it. and sabi ng broker ipa paint daw ang labas ng building kaya mag tataas ulit ng assoc dues. kamusta naman?

kaya ingat sa pag buy ng condo baka yung mapili niyo hindi tumagal ng 50yrs. yung mga nagbebenta mga developers lang yan, once na turnover na nila sa mag ma-manage ng building wala nang assurance na maalagaan mabuti ang building at amenities. kung gusto niyo ng sample punta na lang kayo sa binondo. some buildings there were built during the 80's and 90's and kamusta naman ang itsura ngayon? wala pang 50yrs yung diba? so isip isip rin and suriin mabuti bago mag commit sa malaking halaga. madami akong kilala na bumili ng condo na nagsisi tapos hirap makahanap ng buyer or tenant kasi ang daming competition.

[chefron]

kamusta naman ang cr na walang bintana? hindi ba nakukulob? kase yung exhaust nyan sa kisame lang din sya naikot, hindi nakaklabas

[j.adore]

dapat iconnect yung exhaust vent passage sa window

[Kristalle]

^^^^meron pong condo na "perpetual ownership."

[amethyst028]

^lahat ng building na o-obsolete eventually. lumuluma and dumadating yung time na mas mahal na ang pag maintain niya. there is no such thing as perpetual ownership kasi hindi naman habang buhay nakatayo yung building. you own a portion of the land pero sa dami niyong tenants dun baka wala pang 1sqm ang pag aari mo.

im taking a build and sell course at aim and advise ng prof namin read the master deed before you buy the condo. lahat kame sa class first time lang namin narinig na there is such a thing as a master deed. doon daw nakasulat lahat.

[Kristalle]

I'm sorry but you're wrong to say that there is no such thing as perpetual ownership. Read the Condominium Law. All you're assumptions are just that, assumptions without any or with little basis.

Eto na lang ha, bakit ang dami ng nagtatayuang condo and those easily get sold out. Look ka na lang sa DMCI thread, also with reputable developers like Ayala, SM, Federaland, etc where pila pa minsan ang gusto mag avail. I'm pretty sure those who bought such, which costs millions, were not bought on a whim, those people also did their research. In fact, halos lahat ng nakatira sa mga mid to high end condo are professionals, like alwyers, doctors, etc.. for sure alam nila ang pinapasok nila.

Anyway, I won't argue with you kasi kanya kanyang preference lang yan e. If you will procrastinate, don't be so sure of your H/L din. We also have a H/L in a reputable subdivision pero yun pala bahain ang lugar plus andami pang naaakyat bahay. We got tired of it because we always go out of the country.

At least sa condo, although not fool proof e may dedicated guard and security systems in place.

[bluish_mommy]

well.. if i were to buy a condo, i will buy one from a reputable developer like Ayala, Megaworld, DMCI and the like, except SM (turn off ako sa isang project nila).

@Kristalle, condo may seem to be safer, pero marami din akong kakilala na nabiktima ng nakaw sa condo, hindi ito  pipichuging condo ah, DMCI ito... so hindi rin kasiguruduhan kung condo ang kinuha mo eh safer ka na against if you're living in a h&l.

as I mentioned before living in a condo or h&l is a matter of lifestyle talaga... tulad ng sinabi mo you always go out of the country, possible na napapansin ng mga magnanakaw na walang tao sa bahay nyo kaya siguro napagplanuhan kayo, if I understood it right na isa rin kayong victim? kung ganun nga ang lifestyle nyo then condo will best fit you nga talaga.

[amethyst028]

^^i know may perpetual ownership but all im saying is hindi naman tatagal ang buliding perpetually. unlike if you own a lot na pwede mo ipamana sa anak at mga apo mo. nag aral ako ng real estate and im studying now to be a developer. nasa conduminium act sect 8 na hanggnag 50yrs. lang ang isang building. after that kailangan na siya demolish.

owning a condo really depends on your lifestyle. very practical if you live somewhere close to your work and kids school. also kung konti lang kayo s family. and kung concern mo is security then condo's are the way to go. pero may mga very strict and matataas na bakod na village where you can also feel safe. regarding baha may mga natayo din na condo located sa mga binabahang area i would see sa news yung mga binaha yung mga cars sa basements ng condo.

it's a matter of preference and lifestyle. kung saan mas convenient. ang importante at home ka at present. yung tipong no regrets talaga.

[bluish_mommy]

^Raya Gardens dyan sa West Service road, pinasok ng tubig ang basement nila, lubog mga kotse sa tubig... nasira ata yung pader nila sa creek kaya pumasok ang tubig.. pansin ko lang ang hilig magtayo ng DMCI ng condo katabi ng creek.

regarding perpetual ownership, yan ang isang ayaw ko sa condo eh... at the end of the day, yung pinagpaguran mong pera, ibinayad mo lang sa hangin. dadating ang time na kailangan talaga i-demolish ang building.

[Kristalle]

grabe, that is so much misinformation talaga..IDK what you get out of it. To opine is okay but to conclude is another story. Again pls. read the Condominium Act and then relate it with other laws like the Corporation code. For the record, yung sinasabi nyo is the leasehold, not the perpetual ownership. Just from the word, "Perpetual" siguro naman no brainer na yan. For the record, sa perpetual, you co-own the land not just the building, with the other unit owners. It is your responsibility as a prospective owner to look for a condo na perpetual ownership. Luckily, we got just that. I said, luckily, kasi, maraming owners, di alam yan!

Anyway, here is some insightful things about the law.

http://www.century-properties.com/buying-tips-test/leasehold-or-perpetual-ownership/
http://www.investindmci.com/2010/11/condominium-act-of-philippines-whats-in.html

Many others, just google it.

[Annie M.]

Since @kiz_me1109 intends to rent lang naman, maybe she doesn't need to concern herself with ownership issues. Renting a condo is really nice. It's like living in a hotel na nasa central location and mas secure than a house.

Dun naman po sa mga bibili, I am not an expert, but based on my research (before buying my condo), there are two kinds of condo ownership. This is indicated in the master deed:

Leasehold: Leasehold is a type of title certificate that states you as the owner of the property for a predetermined number of years. Many condos in Manila as well as units in offices/commercial buildings come with leasehold certificate. The lease period can be anything from 20 years to 100 years depending on the leasehold deal you are getting. Sa Rowckwell, I think po 99 years and leasehold.  When the lease expires, ownership of the property reverts back to the developer. (interestingly this  is also very common abroad -- nearly all flats in London are leasehold.)
 
Freehold: This means outright ownership of the property and land on which it stands. When you buy a freehold condo, you have a share in the land when the building is eventually demolished and the land is sold.