Condominium: Real Estate and Luxury Condominiums Essay

Published: 2020-04-22 08:06:56
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Condominiums come in a variety of styles. Some are simply apartments that have been reclassified as condos. Others are much nicer with a real homey feel to them. Its price is simply put; a two bedroom condo will almost always be priced lower than a two bedroom home in nearly every area of the country. There are luxury condos that trump this rule, but there are exceptions to just about every rule. Regardless, the lower price creates a good entry point for first time buyers into the real estate market. The lower price equates to a lower mortgage and thus makes it easier to get the finances together to handle the purchase process.

Second thing is that a condo has everything to do with lifestyle. Simply put, do you have a green thumb? If not, a condo is for you. You rarely have more than a small deck area as part of your condo. The rest of the landscaped area is known as the common area and the homeowners association has people to take care of it. If you hate yard work, a condo may just be the answer for you.

And lastly, a condo has to do with social interaction. In many stand alone home communities today, there is little social interaction between neighbors. Life gets busy and advents such as the internet just limit the time people get out and meet. This is not the case in a condo development. Obviously, you can hide in your condo if you wish, but most people inevitably run into their condo neighbors. Whether it is at the pool, gym or condo association meetings, you will find yourself interacting with your neighbors and making friends.|

Why Is Buying A Condo A Good Investment
September 25, 2008, Thu|

Buying a condo is a good investment because you have a lot of advantages. Home ownership gives you and your family a sense of stability and security. Its making an investment in your future. Also other reasons are for appreciation, because many people view their home investment as a hedge against inflation.

Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return.|

Accessibility

Unlike in the 20th century, todays luxury condos provide larger units to attract families. Todays buyers are buying them as main home or pied- -terre. The new luxury condominiums have increased amenities and services. St. Francis Towers clubhouse has function rooms, a karaoke room and billiard hall. The fitness center has over 50 machines. The fitness center also offers the sauna, cold plunge pool and hot Jacuzzi. A concierge service can do errands for tenants, and the maintenance staff is on call 24/7.

House cleaning service can be had for a fee. Residents like the convenience of shopping at Rustans supermarket and leaving their carts in the lobby to be picked up. Those who live in a luxury condo in an integrated center like being closer to work and enjoying the vibrancy of the shopping and entertainment. St. Francis Shangri-La Place has 994 occupied units out of 1,152 and a population of almost 2,000, but Im amazed that you hardly see people in the elevator, said Formoso.

Investment

AT THE PENTHOUSE rooftop, glass-enclosed Skyroom comes with its own private infinity pool The demand for the large new luxury apartments is constant, added Formoso, so that there seems to be no oversupply on the market. We launched St. Francis Shangri-La Place in 2005. By 2009, 90 percent of the units have been sold, said Milen Treichler, marketing manager of Shangri-La Properties. Weve been selling One Shangri-La for two years now and 50 percent has been sold out. Were on track. Many are repeat buyers. It means that they were happy with us and are willing to buy from us again. Its cheaper to buy when the project is in its infancy because you have longer payment terms.

Asked how the sales team convinces first-time buyers, Treichler cited the reputation of the developer, its affiliation with the Shangri-La hotels and the track record. For instance, the first residential project, the 46-story Shang Grand Tower in Makati, was completed ahead of schedule. Most people would rather invest in real estate than hard solid assets, said Formoso. In a city like ours, the only place to go is vertical. If you want to live in a new horizontal development like Santa Rosa, commuting is difficult, as it takes up too much time. People prefer to live close to the workplace. Its for your quality of life, said Formoso.

He added, in a development such as this, Shangri-La Properties is giving back the buyer the precious gift of Rockwell Land Corporation is one of the premier real estate development companies in the Philippines. It was formed in 1995, after the shutdown of the thermal power plant, by the Lopez Group. Its primary task was to transform the old thermal plant property into a high-end commercial business district, truly a benchmark for innovation in the Real Estate industry.

Rockwell Center, the companys flagship project, sits on a 15.5-hectare site in Makati City. It is strategically located between the three major commercial business districts of Makati City, Bonifacio Global City and Ortigas. The Center has been successfully developed into a self-contained, mixed-use community consisting of seven high-rise upscale residential towers, two office buildings, a lifestyle shopping mall, a city club, and a leading business graduate school.

MIDDLE -income residential developments have become popular the past few years because of their affordable prices. Luxury condominiums have remained robust despite their steep prices. Real estate advisory firm CB Richard Ellis Philippines said that there has always been a demand for luxury residential projects in the country. You cant buy large pieces of land in Metro Manila anymore so the next closest thing would be a luxury residential condominium, said Jose Luis Matti III, executive director of CBRE Philippines Asset Services. Luxury condominiums are usually priced from P175,000 to P225,000 per square meter. Units that are bigger than 200 to around 300 sqm are also considered more on the luxury area, Matti noted. Despite their prices, there are always buyers (of luxury condominiums) because there are those who cant buy a property in Forbes Park and Bel Air. For people who have money, the next best thing is to buy a luxury condo, Matti added.

A 2011 third quarter residential market report from CBRE show that rental rates in residential houses in Forbes Park are at P350,000 to P500,000 per month while rates in Dasmarinas Village range from P300,000 to P400,000. Victor Asuncion, CBRE global research and consultancy group executive director, said the take-up of luxury condominiums from 2009 to 2011 ranges from 67 to 71 units per year. Asuncion said an additional annual take-up of 22 percent, 22 percent and 23 percent were seen in 2009, 2010 and 2011, respectively. Major developers of luxury condominiums in the country include Century Properties, Metro Pacific, Ayala Land, JTKC Land, and Kingdom of SA. According to Asuncion, the supply of luxury residential condominiums will remain constant until the turnover of 220 units of Raffles Residences by Ayala Land and KSA in 2012.

An additional 90 units are also expected with the completion of JTKC Lands Discovery Primea in 2013. Both projects are located in Makati central business district. In Fort Bonifacio, Shangri-la at The Fort will bring in additional 96 residential units by 2014. Matti noted that the growth of the expatriate population has fueled the demand for luxury residential condominiums in the country. With the BPOs (business process outsourcing companies) here and all the foreign companies, their expats need houses. A luxury condominium is one of your top choices, he said. Matti said leasing by expats is also driving the growth of the luxury residential condominiums.

If its bought for investment purposes, the chance of you being able to lease it out at a very good rate is high, he said. A 300-sqm condo could go for around P300,000 a month in rent so if you look at that in terms of investment, if you bought one of those to lease out, your return on investment would be pretty good. I think thats also one of the drivers, he added. Besides the expat population, Matti said people with a lot of family money, prominent families in Manila, and families in large corporations as the primary buyers of luxury projects in the country.

There have been a few years in the past when the market for luxury residential hasnt been as good but I think weve gone past the hump and it has always been one of the better-performing segments of the industry thats why there are always high-end projects, Matti said. The take-up (for luxury condominiums this year) will probably follow the same percentage in the previous years so there will still be a healthy demand for it, he noted. http://www.cbre.com.ph/expats-fuel-growth-of-luxury-condo-market/

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