Most condominium buildings are now being developed through modern means in order to endure ordinary wear and tear compared to the kind of construction which were available decades ago.
Moreover, the third factor must come into play as well. Assuming that a condominium tower has been built over fifty years ago, if the homeowners would actually decide at least more than fifty percent to modernize the structure of the building to be fit for living condition and safety, the structure will remain and demolition would not be necessary. What the law refers to in the 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. Since we have settled that it is untrue that condominium buildings are only good for fifty years, what is the basis of the 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 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.
As a condominium unit owner, you are automatically a member of the corporation and co-owner of the condominium, its lands, and other interests. Your stake will be equivalent to the size and price of the unit or units you own.
For instance, you own a three-bedroom unit of 88 square meters in size. Your stake and voting power will be higher than the owner of a studio unit of 25 square meters. If ever the land of the condominium is sold, you will have a bigger portion of the profit. While some may argue that the definite lifespan and ownership of house and lot is a more favorable investment compared to the finite lifespan and ownership of a condominium building, there are other factors that should also be taken into consideration.
The major selling point of condominiums is their proximity to important places such as schools, business district, hospitals, malls, and major highways. If you, as a homebuyer, wishes to cut commute time, then a condominium unit near your office will be more beneficial to you than a house and lot in the fringes of Metro Manila.
Moreover, a condominium unit is more financially attainable than a house and lot in a central location. As an investor, buying a condominium to rent out or resell is also a sound investment. Its strategic location will ensure you have a steady market of students, young professionals, and small families. And even if the condominium is demolished or sold after 50 years, you as a shareholder will profit from the sale of the land. Buying a condominium for sale may seem trickier than buying a house and lot.
However, remember that condominiums are not so different from houses. Houses are also susceptible to the damages of everyday wear and tear and natural calamities same as condominium buildings. What is the typical life expectancy of building assets or components?
Their study formed the basis of this infographic. To have an idea on how long building components last, UK-based Costmodelling Ltd. We hope you find this infographic useful when deciding which condo to buy or invest in. If you do, chances are you aren't going to get your unit sold. When it comes to physical longevity, the same formula applies to condos as to other high rises, including apartment buildings. The properly funded and prudently managed buildings may have a life-span of over a hundred years, or even more.
The poorly run, neglected and mismanaged buildings usually end up going down sooner. Their physical life span depends on quality of governance, prudence of management policies, and the ability of owners to regularly look after their expenses. Should you buy or lease your retirement condo? How to retire in your current home. Older condos plagued by high maintenance costs Published: June 12, at a.
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