10 Condo Real Estate Terms You Should Know AboutOctober 13, 2021
What are the condo real estate terms?
- Board of Directors or Homeowner Association (HOA)
- Association Dues or Homeowner Association Fees
- Common Area
- Down Payment
- Turnover Date
- Ready-for-occupancy (RFO)
Buying a unit from the top condos in the Philippines can be an immensely exciting and rewarding experience for anyone. The property is a representation of how your hard work paid off. You can now come home to a place that offers the best benefits of convenient, urban living. But keep in mind that buying a condo unit can also be a challenge because there are several condo real estate terms you should know about.
Knowing the different condominiums terminologies will not only offer you confidence when purchasing a unit but also help save you more money in the long term. Continue reading to learn more!
When it comes to condo and real estate buying in general, the term “appreciation” refers to the increase in property value over time. Condo units can appreciate due to rising property demand brought about by future developments in the area, amenities and features, location accessibility, developer reputation, and economic factors. When you purchase a unit from the best condo developers in the Philippines like Megaworld Manila, you can reap appreciation benefits from top-notch amenities, a well-touted reputation, strategic location, and many more.
Of course, you can also increase the appreciation value of your unit by doing several home improvements. Some of the common home improvements that are known to raise property value include kitchen remodels, bathroom upgrades, appliance upgrades, improving the balcony, and improving energy efficiency. Just think about how valuable your condo can be when you rent it out or sell it.
Board of Directors or Homeowner Association (HOA)
The board of directors or homeowner association (HOA) in condominiums refers to the elected people responsible for managing the property. They make decisions democratically and they can establish policies for the condo association. The homeowner association is typically in charge of maintaining common areas, planning sound financial policies, enforcing condominium rules, and responding to residents’ concerns.
Association Dues or Homeowner Association Fees
The association dues or homeowner’s association fees refer to the monthly payments made by unit owners or tenants to maintain the condominium building. Mandated by the homeowner association, it typically covers expenses for garbage removal, cleaning and maintenance of common areas, reserve funds for emergencies, and repairs.
In condominiums, common area refers to the places that are paid for and can be used by all residents. This may include pools, hallways, elevators, fitness gyms, landscaping grounds, and the lobby.
If you want to get the most out of condo living, then residing in the Gentry Manor by Megaworld Manila just might be the best choice for you. This elegant condo set to rise in the Westside City in Paranaque has numerous common areas and amenities like outdoor swimming pools with sunbathing areas, landscaped lush gardens, fully-equipped gyms, daycare with playgrounds, game rooms, and retail shops on the ground floor. You can say it’s complete with everything you need for everyday living.
The term unit in condominiums refers to the specific portion of the property designed for your separate ownership and use. Simply put, this is the area you hold a title to.
Condo units typically come in different sizes. There are studio types, 1-bedroom, 2-bedroom, 3-bedroom, and so on. No matter what condo unit size you choose to go for, keep in mind that the upkeep of the area is generally your responsibility.
A down payment refers to the portion of the sales price you pay to the condo seller to close the sale. The remaining balance of the total sales price will be paid according to the payment terms. For example, at Megaworld Manila, we have different payment schemes. You can opt to pay a 25% down payment to be paid in 48 months installments at zero (0) interest. The remaining 75% balance is to be paid upon the unit turnover date.
The term “interest” refers to the cost of borrowing money when buying a condo. It is combined with the principal to calculate your monthly mortgage payment.
The turnover date refers to the date wherein you take ownership of your unit. This is the time wherein all the rights and responsibilities involved in the unit are transferred to you as the owner.
If you are actively on the hunt for your dream condo, you might have come across the term “pre-selling”. Pre-selling refers to the period wherein the condo developer is selling their project units before it is completed, during its construction, or before its groundbreaking. Simply put, the condo unit is not yet built.
There are many merits to buying a pre-selling condo such as flexible payment schemes, a lower introductory price, excellent investment opportunities, and the freedom to choose the unit you want. Let’s say you want a unit with an excellent bay sunset view in the Gentry Manor by Megaworld Manila. You can easily purchase the pre-selling condo unit faced in that area instead of competing with other buyers during the ready-for-occupancy selling period.
Ready-for-occupancy (RFO) refers to the condominium units that are ready for moving in. Once you have finalized the purchasing process, you can pack your bags and stay in your unit immediately — a primary advantage over pre-selling units.
As a future unit owner, it is important to know the different condo real estate terms above. Knowing the different condo terms and definitions is the key to making smarter purchasing decisions.
At Megaworld Manila, we believe that buying your dream unit should not be hard. We would be happy to assist you throughout your purchasing journey. If you have concerns or inquires, don’t hesitate to contact us by clicking here.