The urban population in the Philippines is rapidly growing and the price of land is continuing to go up. This is why we are seeing a lot of condo projects in development abound. Buying a condo in the Philippines though can be quite complex with some details disclosed only after purchase. It pays to exercise due diligence before you invest and part with your hard-earned money. If you are thinking of buying a Condominium unit in the Philippines and planning for your first site-tripping with your real estate agent, here are a few things to know.
What is a Condo?
A condo in essence is a form of legal ownership where an owner holds a title to a specific unit but shares common parts of the property, such as the grounds, walls, amenities, and other building structures with other unit owners. Here in the Philippines, usually, when we say condo, a tall, multi-unit building with a panoramic view comes to mind.
Can Foreign nationals purchase a Condo in the Philippines?
Real estate law in the Philippines does not allow outright ownership of real property by foreign nationals. However, foreign nationals may buy condo units (shares in condominium corporations) as long as they do not exceed more than 40% of the units in a project.
Buy or Rent?
This really boils down to your lifestyle philosophy and what matters to you. But if you can afford it, buying a condo can be a good way to get into the real estate market if you know what to do. Some people buy condos as investments and not residences.
We have also had several clients who purchase units (pre-selling) at prime locations, get them designed afterward, and then put them up for rent (Airbnb, et cetera).
What are the advantages and disadvantages of owning a condo unit?
Most home buyers these days choose Condo units because of its:
- Accessibility
- Convenience
- Security
- Upkeep
- Price
Now the Downside. Big space is not exactly what condos are known for (the average floor area of a condo unit in Makati is only around 40-50 square meters). If you have a car, expect to pay a premium for the parking as well.
A condo may not be an ideal inheritance to your children or grandchildren. When the time comes for you to pass on your condo to your kids, your unit may no longer be an ideal dwelling. Also, association dues are higher for condo unit owners as opposed to owners of single detached houses in villages as it has to cover the security, solid waste management, maintenance of common areas and others.
How to choose the right Condo
- Location – This is usually the primary consideration. Although most condos now are located at prime and established locations, the condo unit you should be looking at would ideally be situated near major thoroughfares, your place of work, or if you have kids, near your children’s school. For migrant workers or our fellow balikbayans, the unit should be near the airport.
- Developer – If you can, visit web forums or try to get feedback from other unit owners from the developer of the project that you are interested in.
- Amenities – If you’re a health buff and you want a Gym where you reside if you like swimming or doing laps for your cardio, or if you like entertaining guests and throwing parties, so on and so forth.
Interior design for your Condo
A condo can be an excellent lifestyle choice. There is no right or wrong in choosing a design motif for your dream home. After all, it is your home and you will be the one living there. Interior Design experts, however, are here to help organize your ideas on how you want your ideal space to look.