The exposure of the condominium building to the elements aggravates its natural wear and tear. The limitation imposed by law is also the limitation imposed by reality. Opt for partition thereof by sale of the entire project, as if the owners of all of the condominiums in such project were co-owners of the entire project in the same proportion as their interests in the common areas: Provided that a partition shall be made only subject to the provisions of Section 8 of RA 2.
Consider demolition of the condominium building, sell the land where it stood and divide the proceeds of the sale among themselves, based on how much shares they have as determined by the value and number of units that they own 3. Move for the construction of a new condominium building on the land with the original developer or a new one.
Yet, with all the aforesaid considerations, procuring a condominium unit is both a sensible choice and a good investment for many reasons. For a start, it tends to be less expensive than buying a house except, of course, for those decidedly upscale ones. Because condominiums are usually strategically located, they offer many conveniences like being near schools and malls, hospitals, and workplaces.
To put it simply, a condominium is a convenient home in a good neighborhood for an affordable price. For a good number of years, the owner will enjoy the amenities of modern living and the conveniences offered by a good location, not to mention the intangible benefits, such as the prestige of owning one. For the condo building to remain functional, it requires cyclical maintenance and replacement of its major components over time.
By the time a condo building reaches 40 to 50 years of age it will have gone through several partial or complete retrofits, likely in stages.
Properly governed and managed condo complexes maintain amortization funds the necessary accumulation of moneys over time for replacements of the common elements without undue financial hardships.
Looking into a more distant future, more frequent and repetitive replacements of the vital common elements will give rise to higher maintenance fees in older complexes. In some cases, they will rise to the point of becoming unaffordable to a majority of the unit owners. In extreme circumstances, facing severe financial hardships, some condo buildings may end up being wound down either voluntarily, by the unit owners, or through insolvency proceedings commenced by creditors.
The problem of not being able to maintain adequate amortization replacement funds may arise during times of economic slowdowns. Unit owners may experience employment losses rendering them incapable of contributing to necessary fiscal obligations of their condo complex.
History shows that buying a condo unit with a small or no down payment presents a huge risk to the financially weak unit owners who may lose their units during economic hardships.
If the complex is composed of many such unit owners, the whole complex may become underfunded and unable to carry on with the repairs and replacements of its vital elements. Every condo unit owner should be fully apprised of their condo complexes' financial well being. Quality of management and its governance is of paramount importance. The take-it-for-granted assumption that, when you buy into a condo complex others will take good care of its governance and property management, is dead wrong.
Every condo unit owner is strongly advised to actively participate in the day-to-day running of their condo complex by closely monitoring and contributing their time when necessary, to all the facets of its operation.
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. And if the time comes, shareholders to the condominium corporation can vote to have the building demolished, and they have two options.
Either they sell the land, make some money from the salvageable scrap from the demolished building, deduct the cost of demolition, and divide the proceeds among the owners; or strike a deal with the original developer or another developer to build a new condominium on their land. Absolutely not.
When a person buys a property, he also considers the lifestyle he leads and the problems the purchase solves. Ownership in the case of a condominium may be limited compared to a landed property, but it definitely makes up for in terms of convenience, such as being close to places of work and commercial areas, an in-city lifestyle, and the convenience of not having to do long commutes every day.
As a shareholder, you and your heirs also get to profit from the sale of the land should the condominium corporation decides to do so. ZipMatch Home. February 21st, 4 min read. Buy now, derelict later? The one-time grace period will start from the due date and 60 days thereafter.
No penalty charges for late payment shall be imposed for the said period. Qualified clients who wish to avail of the payment reprieve may contact Customer Service 10 days before the due dates of each amortization at customerservice federalland. We hope you and your loved ones are safe and healthy!
Read more: The Manila Times. The popularity of condominiums as real estate investment is moving up. Here are the reasons why you should get on the market and invest for the long term.
Summer is almost here, and with it comes the desire to make everything in your condominium bright and airy. The sun is shining, flowers are blooming, but if the insides of your unit feel gloomy, crack open your windows and deep clean your condo. Please indicate that you have read and agreed to the Data Privacy Policy.
Here we will answer a few important questions to allay concerns. How long is the lifespan of a condominium building? That the building is: over 50 years old; obsolete and uneconomic; and the unit owners holding in aggregate more than fifty percent interest do not agree to repair or modernize the building. What happens when the condominium is declared uninhabitable? There are usually two options, they can: sell the land and divide the proceeds among themselves; strike a deal with the original developer or another to build a new condominium on their land.
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