In the Philippine real estate market, owning a condo is a relatively new way of acquiring property. It is a good idea for people who want to have their own living space, but cannot afford to own an actual house. Condo owners can customize their own units, yet share common expenses with other owners, like building and facilities maintenance.
If you are looking to buy a Makati condo, then you probably know all the benefits. However, you also need to know what red flags are. What problems should you keep an eye out for when you are looking for a place? What are the things that signal present, past and future problems? While these things are not absolute, finding them means that you need to do a little bit more digging before you finally invest in a Makati condo or apartment.
- Low price. You have to check out the price range of the area you are in. If the Makati condo you are interested in charges significantly lower, find out why. Low condo rates may mean that you have to pay for other things. You may have higher association fees or be required to pay assessment fees more often.
- High price. Condo developers that charge too much for units and amenities may be having financing problems. Protect your capital by avoiding developers like these.
- Low reserves. A building’s reserve fund is for regular maintenance repairs. If a Makati apartment does not have enough money it is reserve fund, it may not have enough money to keep up with the building’s repairs.
- Special assessments. This is a one-time payment that you need to pay on top of what you pay for the Makati condo itself. This goes to the reserve fund or is used to take care of a current issue in the condo. Ask what the money will be used for.
- Unresolved tenant issues. You will want a Makati apartment where your needs as a tenant are taken care of.
- Registered size is not the same as the number listed. If you are paying for 200 sq ft, then that’s what you should get.
- Unavailability of some documents. If some of the Makati condo’s documents are not available, do not sign your contract.
- Water stains or water damage.
- Number of units for sale. If there are a lot of other tenants who are selling, ask why. If it’s a big issue, then you might want to look at other condos.
- Neglectful building managers. If they cannot take care of the people who are paying to keep them in business, why would you buy from them?
Most of the time, red flags are obvious and all it takes is a little research. Ask your questions from your realtor. If something seems off, and they cannot explain it, drop the deal. The Philippine real estate market is huge and you will be able to find the right Makati condo eventually.
