7 Useful Tips when Buying a Condo Unit
Here is a list of things you should consider when buying a condominium unit. For most condo buyers, price is definitely a major issue but trust us when we say it should not be the only issue!
We have lived before in a few condos in Makati and at The Fort Global City and based on our experience, here are several factors you need to consider before purchasing a condo unit.
Feel free to add your inputs to the list!
7 Things to Consider when Buying a Condo Unit
- 1. Location, location, location
When buying real estate, condos included, a major factor that should always be on top of the list is location, location, location. The location of the condo greatly affects the potential of price appreciation. The Makati area, for instance, being the business center of the Philippines, has always proven to be a good investment area. At The Fort, however, prices of real estate are skyrocketing and, as of this writing, have not peaked yet.
A friend who owns a condo near McKinley Street inside The Fort Global City paid around P2.5 million when he bought the unit in 2007. Now, the going rate for the same unit is P3.5 million, a 40% increase just after a year.
The location also determines accessibility to needed comforts and conveniences. If you value convenience, get a condo unit that has easy access to restaurants, schools, banks, or hospitals.
Our previous condo in Buendia, Makati is located strategically with access to two restaurants, three fastfood chains, and four convenience stores. “Access” here means ability to go to those places by foot in under 10 minutes from the unit. Most of these establishments are open 24/7 which means I had no problem if I needed to grab a bite at 2 a.m. The downside, however, is the traffic and noise because during the day, the area is busy with lots of people.
Our new place at Bonifacio Global City, however, is quiet but away from all the conveniences. The nearest McDonald’s outlet is six blocks away and if I need to buy groceries, I’ll have to run to Market! Market! which is a 5-10-minute drive. But the good thing is, we’re far away from the chaos of traffic and annoying sounds of passing vehicles.
- 2. Reputation of the Developer
For condos that are still in pre-selling stage, the reputation of the developer matters a lot because it ultimately determines whether the condo building will actually be completed. There have been cases of condo projects in the past that halted construction because the developer ran out of money. In such a case, it would be difficult to get your money back.
For condos that are already ready for occupancy (RFO), the reputation of the developer can tell you if they are committed to work with the condominium homeowners’ association to help manage the condo. Condo management means installation of effective security measures, strict implementation of condo rules, and proper maintenance of the building.
This is not an endorsement but Ayala Land, Robinsons Land, Megaworld, Federal Land, Century Properties and DMCI, among others, have proven themselves to be reliable real estate developers based on their ability to turn over condo projects to homeowners within predetermined dates.
- 3. Parking
If you think condo units are expensive, wait till you hear how much parking spaces cost. In our Makati condo, one 9-square-meter parking slot costs between P400,000 to P500,000. Yup, around half a million pesos. At The Fort, some parking slots sell for P600,000 to P1 million.
If you can afford it and if you really need to have one, get it. But if you think it’s too much, renting a parking slot may be the next best thing. Rental rates normally range from P3,000 to P10,000 a month. Inquire with your condo’s property office how to rent one or ask other condo residents if they are renting out their unused parking slot.
- 4. Noise
In a condo, you share everything with other residents — elevators, swimming pool, playground, garden, etc. That includes the noise as well. When our new neighbors upstairs moved in, I could hear their footsteps almost everyday during the first week. One time I opened the windows, I was greeted by the screaming blast of karaoke from the residents below us. One Sunday morning, I was woken by the sound of the drilling machine in the unit next door.
The good thing is, though, is that you can call the guards on duty to complain about them but, honestly, it gets tiring if you’ll have to do it every time. If they won’t stop even after you have complained, you’ll either have to live with the noise or file an official complaint against the unit owners with the building administrator. It only goes to show that living in a condo does not necessarily mean you can get away from loud and boisterous people.
- 5. Amenities and Population Density
A condo may be expensive because of the amenities it offers. Normal amenities include swimming pool, gym, children’s playground, function room, and the like. Assess whether the price you are paying equal the value of the amenities to you.
Population density refers to the number of people per unit area of space available. In a condo, this translates to the number of residents sharing the amenities.
Of course, the more residents a condo has, the less space is available to you. For example, our swimming pool at The Fort can comfortably accommodate only eight people. Put some more and the pool will look like a can of sardines. It also has four elevators and normally I wait 1-2 minutes before I can get on one. Two of the elevators broke down one day and I had to wait more than 10 minutes because the working elevators stopped at every floor.
In short, the more people living in a condo, the more inconvenient it gets because you’ll have to share the amenities with more people.
- 6. Association Dues
Living in a condo means paying an additional expense every month: the association dues. This represents your contribution to the shared costs incurred by all condo owners, such as electricity in common areas, water used in swimming pools and for watering plants, and wages of security guards, janitors, and maintenance workers. This is usually a fixed amount multiplied by the total floor area of your unit AND parking slot, if you have one.
Our monthly dues at our Makati condo was P40.00 per floor area while at The Fort, it is P55.00 per floor area. Make sure you pay these association dues on time because like credit cards, the penalty interest rate for late payment ranges from 1-4% per month. That is a hefty price to pay for living in a condo.
- 7. Rules and Regulations
As a resident, you are bound by rules and regulations applicable to all residents and tenants of the condo building. Some condominiums, for example, totally disallow pets and animals of all kinds. There are condos that forbid tearing down a part of your unit or changing the color of your wall. Some condos allow residents to use the swimming pool or common area up to a certain time only. Parties inside residents’ units are allowed but normally have to end before 10 or 11 p.m. Know your condo rules prior to buying so you won’t be surprised by the regulations once you have moved in.
If you are looking to buy a condo, don’t be concerned with price alone. Several things must be considered so you won’t feel shortchanged or disappointed with your purchase. The list above may not be exhaustive but we hope we gave you an idea on what to look for before buying a condo.
Happy condo living!