10/04/2022
MUST READ!!!
Leasehold vs freehold (perpetual ownership)
There are two kinds of condo ownership.
In the Philippines there are two kinds of condo “ownership”. One is Leasehold Ownership. This is a kind of limited possession that lasts roughly 50 years after which you can either extend the lease for 25 years or return the property to the developer/landowner. In effect you are buying the right to live in the property for a fixed amount of time. It’s like paying 50 year’s worth of rent many years in advance.
This kind of ownership might make strategic sense to you. Just be sure to check the leasehold stipulations so you know who takes care of maintenance and repairs as well as what’s covered in the monthly fees etc.
Perpetual Ownership is a different deal. Here you get to fully own the property. You don’t have to give it back to the developer/landowner because YOU own it. Instead, you can live in it for as long as you like and eventually pass it down to your kids or grandkids as an inheritance.
Leasehold and Perpetual Ownership each have their advantages, depending on your needs and goals. Maybe you’re an investor who wants to make money renting out multiple units; leasehold may be a good option for you.
However, let’s assume you’re looking for something to own for a lifetime and possibly several generations after that. In this case, Perpetual Ownership is what you need. Make sure to look for this option when scouting.
