How long will these structures last? Apparently, it could survive for more than 50 years.
- 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.
Section 11 provides that “the term of a condominium corporation shall be co-terminus with the duration of the condominium project.”
Since we have settled that it is untrue that condominium buildings are only good for fifty years, what is the basis of the 50-year rule? Ownership of the condominium is similar to a corporation where unit owners are considered to be the shareholders. This is the reason why major decisions such as renovation and repair of the building or even the common areas must be voted upon by at least more than fifty percent of the homeowners.
In instances such as demolition of the structure and when there is any income from the scrap materials, unit owners are entitled to get a share depending on the extent of their ownership. The 50-year rule is based on the Corporation Code of the Philippines wherein it is declared that the life of a corporation is only good for fifty years. So does this mean that the dissolution of the condominium “corporation” would lead to the termination of the condominium project? Of course not! The Corporation Code gives right to corporations to renew their existence for another fifty years. Therefore, a condominium corporation may do the same and renew their registration while co-existing with the residential condominium building for as long as it is fit for human habitation.
- 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.
Now that we have debunked the common myths on the downside of purchasing condominium units, try to reflect on whether buying this type of dwelling will give you better gains. Moreover, there are different kinds of condo spaces available in the market so aside from choosing the most realistic in terms of your budget, check on the amenities and facilities if they are suitable to your needs. Most importantly, research and
ask your broker about the developer who built the project.
