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RangerUp

What Happens to Your Condo After 50 Years? The Truth Revealed

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RangerUp
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Your condominium doesn’t have a lifespan, but the corporation managing it has one. In the Philippines, 50 years is the lifespan of all companies and corporations, big or small.  However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point.

Three factors need to be fulfilled to declare a condominium uninhabitable.

 “That project has been in existence in excess of 50 years; that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project.”   - https://pursuitofpassion.ph/practical-living/what-happens-condo-50-years/

 

 

 

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softail

Sounds like to me, it would be in your best interest to find out how old the condominium is, if you are buying a used one.

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RangerUp
31 minutes ago, softail said:

Sounds like to me, it would be in your best interest to find out how old the condominium is, if you are buying a used one.

Yeah, it's an interesting law because it was passed in 1966, only a few years after the first condo in the US.  So it's a 50+ year old law that will only gradually become more and more relevant in the coming decades.

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Headshot
1 hour ago, softail said:

Sounds like to me, it would be in your best interest to find out how old the condominium is, if you are buying a used one.

I think it would be more important to find out how proactive the condo association is on building maintenance. The organization can be extended by 50 years at a time, provided the building has been well-maintained. If you find that many condo owners balk at reasonable maintenance and improvement items on the annual budget, then it may be best to buy someplace else.

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Barryrio

Amazing if fact. To think that I was raised in Rio de Janeiro, Brazil, and many high-rise apartments that were 30 or 40 years old when I was a kid are still in great shape nearly 70 years down the line due to regular maintenance. So it doesn't say much for the local standards. Particularly as Brazil is known for not doing things by the book or for complying with building codes and the like too closely!!! 

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jaybee747

"Fact #1: When you buy a condominium unit, you become part of a corporation.

A condominium corporation owns the land where your condominium is built. As a unit homeowner, you can think of yourself as a shareholder of that corporation. It’s the same as having a homeowners association in landed housing developments."

Is it always true? What about a condo building that is built on a leased land?

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RangerUp
1 minute ago, jaybee747 said:

What about a condo building that is built on a leased land?

There is still a 50-year rule under Republic Act 4726 or the Condominium Act of the Philippines either way, the difference is with the land:

Leasehold Ownership: If the developers lease the land where they build their condominium, after 50 years unless the lease gets extended then the property ownership reverts to back to the actual landowner.

Perpetual Ownership:  If the developers buy the land, and "Perpetual Ownership" is stated on the deed where it indicates the type of ownership.

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TheMatrix

I wonder what the life expectancy is of Winland Towers?  I have about $300,000US vested there in owning two large 3br units.  My units are well maintained, but the building itself leaves much to be desired.  I think those towers were built in the 1980's and are the first high rise condo's to be built in Cebu City.  

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RangerUp
25 minutes ago, TheMatrix said:

 I have about $300,000US vested there in owning two large 3br units.

Large 3br at Winland are selling under $100,000US, only 40k per sqm.

29 minutes ago, TheMatrix said:

I wonder what the life expectancy is of Winland Towers? 

Probably depends on the type of ownership stated on the deed, ie if Winland owns or leases the land.

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TheMatrix
13 minutes ago, RangerUp said:

Large 3br at Winland are selling under $100,000US, only 40k per sqm.

Probably depends on the type of ownership stated on the deed, ie if Winland owns or leases the land.

High floors, great views, highly renovated units down to new plumbing and electrical in the walls.  Totally decked out, plus shipping the container of US goods for the renovation, US toilets, furnishings, etc.  Yeah, well over $300k invested.   I get 8000-9000p (airbnb) per night with the most luxury unit of the two.  

Edited by TheMatrix
typo

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smokey
52 minutes ago, TheMatrix said:

I wonder what the life expectancy is of Winland Towers?  I have about $300,000US vested there in owning two large 3br units.  My units are well maintained, but the building itself leaves much to be desired.  I think those towers were built in the 1980's and are the first high rise condo's to be built in Cebu City.  

You invested that much in two units dang and your rental stream is. ???

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TheMatrix
4 minutes ago, smokey said:

You invested that much in two units dang and your rental stream is. ???

Hey smokey, I don't rent the Winland units out much.  I have five houses in the US as well and don't rent any of them.  I don't really need the money and kind of lazy I guess with making the effort.  I've been meaning to step it up for a few years now and get them all cash flowing.  I know it's stupid just to let them all sit empty.  The one particular condo at Winland is my personal home and when I visit, I like having everything pristine.  I visit a couple times per year for weeks at a time.  The other unit I need to get it cash flowing and listed on airbnb probably for 5000p/night.  

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smokey

Good you restore my thoughts of you as investor.  I will leave one of my rentals empty often due to me being annoyed easy but the bottom has the same renters 4 years and the other unit i rented 2 months ago to a couple never here

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smokey
17 minutes ago, smokey said:

You invested that much in two units dang and your rental stream is. ???

One thing i have learned is you will never get the locals to invest in maint and.they will never agree seems to them that is loosing face. This subdivision now has over 170 houses and the dues is 850 peso a month the houses range from 150 thousand us to 1.4 million and 62% of the people WONT PAY THEIR DUES.  So the company put leins on the houses incase they sell but locals almost never sell

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RangerUp
31 minutes ago, TheMatrix said:

High floors, great views, highly renovated units down to new plumbing and electrical in the walls.  Totally decked out, plus shipping the container of US goods for the renovation, US toilets, furnishings, etc.  Yeah, well over $300k invested.

When did you buy it? I remember you posted here that you were renting it.

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