Pros and cons of buying a condo unit

Homebuyers would do well to understand the pros and cons of buying a condominium unit, before taking the big step towards vertical living.

Unlike a horizontal residential project which includes the whole land where the house is built, a condominium unit takes only a small share of the land, corresponding to the size of the unit versus the gross floor area of the building.

Republic Act No. 4726 or The Condominium Act defines “condominium” as “an interest in real property consisting of separate interest in a unit in a residential, industrial or commercial building, and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building.” 

It is a Latin derivative word from the early 18th century; “con” meaning together with and “dominium” meaning right of ownership. Simply defined, condominium refers to “individual ownership of a unit in a multi-unit structure (such as an apartment building) or on land owned in common (such as a townhouse complex).” 

Condominiums are usually high-rise developments in urban centers where the price of land is much higher than in other areas.   A condominium project covers land where the building/s and improvements are located; building/s, their units and floors, parking, whether above or below ground; common areas, facilities and or amenities; purpose/s for which the building/s and units are intended or restricted;  interest of the owners in their units and common areas; and rights of the unit owners. 

Pros of owning a condominium

There are several advantages of owning condominium units in a city where land is the most precious asset.  A condominium unit is considered more affordable than acquiring a house and lot in the city.

Condominium projects are conveniently located in highly-dense areas and/or within business districts, thus a short distance to malls, groceries and supermarkets, healthcare facilities, laundry shops, etc. Most buyers prefer condo projects that are close to their offices or the schools of their children, to save on transportation fare and time.

Most condo projects have amenities like pools, gyms and fitness rooms, lounge areas and function rooms, kids areas and playgrounds, oftentimes not available to house and lot owners unless they live in a gated community. 

There is also 24/7  security, augmented by CCTVs, smoke detectors and fire sprinkles. 

Building managers and technicians are on call for repairs and maintenance of common areas.

However, there are also disadvantages of owning a condo unit.  For one, some buyers do not like the idea of not owning the land where their units stand. 

Some buyers also don’t like their rights and movements restricted because of the stringent master deeds, by-laws and house rules. Renovations are also controlled, especially if it affects the building’s structure or exterior appearance.  

There are also those who complain about their difficulty in expanding their spaces, while some residents expressed concerns about privacy issues due to the large number of units and or constant monitoring by security cameras. 

Condominium corporations also require the payment of monthly dues or fees needed to cover their operational costs such as salaries for administration staff, cleaners, security guards, technicians, common utility charges, real estate taxes, periodic repairs, pool cleaning, preventive maintenance for elevators, generators, pumps and water tanks. Additional condominium assessments may be imposed to cover building exterior and common area repainting and the rehabilitation of amenities.

Occupants in large condo projects also do not like to fall in line when it comes to getting to the elevator, especially where they are in a hurry.

Real estate agents, however, believe that condo is a good starter unit for first-time buyers and even for others.  In fact, some retirees actually sold their house-and-lot units to purchase condo units which have elevators, compared to two-storey houses whose stairs are not conducive to the elderly.

Moreover, foreign retirees who cannot buy land in the Philipines are allowed to own condo units.