07/06/2020
🏢✨ FACT OR FALLACY? Let this helpful article debunk the fallacies about condo units!
💡THE CLAIM: The lifespan of condominium buildings is only good for fifty years.
☑️ Fact or Fallacy? FALLACY!
This is not true. The law does not provide that condominium units are strictly just good for fifty years. The law states that aside from being more than fifty years old, it must be obsolete and uneconomical plus the fact that majority of the unit owners are against its repair and restoration.
💡 THE CLAIM: Ownership of the condominium ends after 50 years.
☑️ Fact or Fallacy? FALLACY!
What the law refers to in the 50-year rule is the lifespan of a corporation which is essentially the same to unit owners who make up the condominium project. However, the condominium corporation can actually be renewed for another fifty years so the ownership does not necessarily end. In addition, this is based on the practice before where real estate developers would only lease the land where they build their condominium structures. This practice is limited to a leasing period of fifty years but nowadays, developers would buy the land and the leasing rule will no longer apply.
💡 THE CLAIM: Buying a condominium unit is NOT a good investment.
☑️ Fact or Fallacy? FALLACY!
Some may argue that even if the lifespan of a condominium structure could actually last longer than fifty years, having a house and lot is more beneficial for investment. However, a homebuyer must take into consideration various factors in deciding which type of home suits his or her needs. First is the financial capacity of the person. Owning a condominium unit is more attainable if you earn less compared to waiting for decades to save up just to purchase a house and lot. In addition, property taxes that one must pay for owning a condo space is relatively cheaper compared to a home built on land. Second, one would still have to shell out money when owning a house since the structure is still exposed to various elements which would entail a renovation. Third, come to think of the funds and time you could save when it is no longer necessary for you to travel or commute far every day since your residential space is just within the proximity of your workplace. Most condominium developments are strategically positioned around business districts where a great number of job opportunities are available or even near schools and universities where you may enroll your children. Imagine the convenience and the time you could set aside for recreation. So try to weigh the pros and cons whether condo living will actually fit your personality and your family’s lifestyle. You will realize that it is actually possible to save more money if you decide to invest in a condominium unit.
📑 : Hoppler