While buying a home to live or as an investment, many buyers are unsure whether or not it will be a good option to select a condominium over a regular house. Condominiums are cheaper, have more options and are a good source of income both as an investment and as a rental property. However, there are some myths circulating in the market which cause the buyers to avoid purchasing a condominium. Today we will analyze the myths and try to give you logical answers so that you can better decide what to buy and what not to buy.
Myth 1: Condominium buildings have a lifespan of only 50 years?
People often argue that the law says a condominium unit is obsolete after 50 years of construction but that is not the case according to the section 4726 of the Republic Act, the condominium is rendered uninhabitable if all three of the following are fulfilled.
- It is more than 50 years old
- It is obsolete and uneconomical
- Owners holding an aggregate of up to or more than 50% of the shares are opposing the repair of the building
As a matter of fact and what we have found in practice, all three of the above conditions are never met simultaneously. Even if the condominium is in existence for above 50 years, it is not must that the building is obsolete and uneconomical. Moreover, 50% of the owners easily agree to modernize the design and renovate the building.
Fact 1: Condominium Buildings have a service life of well above a mere 50 years.
Myth 2: Condominium Ownership is effective for only fifty years
The fifty years rule does not in any way snatch the proprietary rights of the owners of a condominium after fifty years. It only states that the life of a condominium organization is same as that of the condominium itself. When we have established the fact that a condominium can be usable for well above five decades, it follows from that fact that there is nothing like termination of the proprietary rights until the condominium is there.
Fact 2: The Condominium Ownership Never ends as long as the structure is there
Myth 3: Condominiums are not a good investment option
Well, this myth is hilariously false and totally out of sense. It is more like a conspiracy theory spread to make people invest in other property options which are actually not a good option. If you are going to purchase a house, make sure what your exact needs are and how much money you can spare for it. The fact that the condominium is easy to sell and renting the property makes the condominium a better option for investment. Moreover, it is also cheaper to buy and operate as a home and offers more functionality.