Things You Need to Know before Buying a Condominium Unit
What Are Some Things You Need to Consider before Buying a Condominium?
Imagine, six out of 10 home sales these days by a real estate broker in Baguio City are condos despite the units getting smaller and smaller. Are you considering making a purchase or transfering really soon? Well, you must remember that there is more to buying a condo in Baguio City than meets the eye. Here are some practical points to remember:
1. The parking spaces in condominium complexes are not free. Yes, there may be common parking spaces, but if you want one that’s solely for your use, you will need to buy it. That’s the difference between owning a house and lot in Baguio City and owning a condo unit. With a house and lot, you’ll have your own private parking space, no problem. With a condo unit, you will need to shell out an additional Php 500,000 to Php 1 million just to have your own parking space. That’s on top of the money you’ll shell out for the condominium unit itself. The only upside to owning your own parking space is that you can eventually rent it out to another condominium owner who doesn’t have his own parking space.
2. Always ask your real estate broker in Baguio City if the condo he’s offering you is pet friendly. Pets are usually considered part of the family, so it goes without saying that you’ll bring your pets with you wherever you move. However, not all properties allow pets. There is such a thing as a pet policy put into place in most complexes which states what type of pets are allowed, the breed, the size, etc. Hence, you always need to ask if the complex is pet friendly because the last thing you need is to gear up for the move only to find out the last minute that you’ll have to leave your pet behind
3. When buying a condo in Baguio City, make sure the agent is disclosing the full price to you. Why is that? Well, most agents will not disclose it in their presentation, but there is a 12% VAT that is placed on top of the selling price. Ask your real estate broker in Baguio City for this during the pre-selling, because the VAT is something they “keep” from buyers. You’ll only learn of it when it’s time to sign the final papers or when it’s time to hand over the initial payment. So basically, the worth Php 5 million condo you’re buying will actually be Php 600,000 more expensive because of the 12% VAT. Condo units selling for Php 2.5 million and above are already subject to 12% VAT.
4. Never forget to ask if the condominium is for lifetime ownership or if it’s a leasehold property. That’s another big difference between a house and lot in Baguio City and a condominium unit. Not all condominiums for sale are for perpetual ownership. Some condo units are leasehold properties, which means you’ll only hold temporary ownership of the unit for, say, 50 years or so, and after that period, you’ll have to return it to the developer. If that is the case, you will not be given the title to the condo unit upon purchase. However, if a title transfer for the condo unit is processed upon sale, then that means it’s for perpertual ownership.
5. When you purchase a condominium unit, you are required to join the condominium association and obligated to pay the monthly or annual association fees. More often than not, the fees are computed at Php 50 per square meter. You can’t renege from paying the dues because the collected dues actually go into the building upkeep/maintenance, payment for the security guards and janitors, and other similar expenses.
So there you have it; these are five things you need to keep in mind before you finalize a condominium sale. Your purchase will be hassle-free if you understand these key factors related to the sale of your future home.
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