Are you in the market for a condo? Here are a few things to consider before taking the leap.
By Lynda C. Corpuz

Buying a house and lot seems like the ideal scenario. But with prohibitive prices or distant locations, it’s not for everyone. And to be sure, some people would rather live in a condominium. For a growing number of Filipinos—whether by force or by choice—their condo has now become their home sweet home.

If you’re looking for a condominium, you have to decide if you should buy a unit or just rent. Buying of course gives you a sense of ownership, as you own not just your condominium unit but your part of the common areas in the building. You’re in fact a co-owner of the condominium corporation itself.

Your condo unit can also appreciate in value, making it an investment especially if you sell it later on. It also gives you permanency of address, compared to a renter. It also reflects well on you when you apply for loans. Plus, there are no hassles and headaches in dealing with a landlord (or landlady for that matter) since you’re not a tenant but an owner.

Renting is okay also, especially if you plan to move in a few years. But if you rent for the rest of your life, you don’t build any equity in something you can call your own. In fact, the amount you pay for rent for, say, five years may already be equivalent to buying a condo outright. “Renting or buying, either way, it all depends on the person’s needs,” concludes Daniel De La Cruz, president of online condominium supermarket www.condo.com.ph.

Whether you buy or rent, you have to keep in mind some important factors before you sign that contract. Don’t get easily sold by what you see in brochures, model units, and 3D walk-throughs. Here are the seven top things you need to check:

1. Location, location, location. Nothing beats the right location, as it dictates both your lifestyle and your condo’s market value. It should be near your place of work and accessible to schools, hospitals, shopping malls, and major roads. Felipe and Cristina Salvosa share that their condo is very easy to get to and from work—a must factor for young professionals these days. JM Martinez, who lives and works in Makati, says, “As long as you live in a place accessible to your work, that would be the best benefit from this investment.”

2. The developer. Who’s behind the condominium project? Those who were burned in the late 90s know how painful an experience buying a condo during the pre-selling stage only to find out later the developer has run out of funds to complete the project! JM says the developer should be dependable and reputable, even if it means paying a price premium. “But more than the reputation of the company, we want to be assured that the company is an expert in the business and the structure was built with good materials,” he adds. So check the track record of the property developer.

3. Infrastructure and amenities. Ask about the infrastructure, utilities, power generators, security, soundproofing, even garbage disposal. What are the amenities and recreational facilities available? Is there a swimming pool, gym, playroom, function rooms, and garden? You don’t want to go down and get out every time you want to do something. You want to make the most out of your investment. If it’s a mixed-used development, scrutinize the entire master plan. Will there be offices, schools, cafés, restaurants, and shops in the community? Analyze the floor plan of the unit you’re eyeing. Examine if it’s the right size and space for your needs not just now but a down the road.

4. Density. Remember, you’re living in a high-rise building, sharing with hundreds or even thousands of other occupants a limited number of elevators, parking space, and amenities. Ask how many floors and how many units per floor there are. Consider the master plan of the developer for the entire vicinity, particularly for mixed-used developments. How many buildings will be put up and how many people are expected to live, work, shop, and dine in the entire complex? Where will these buildings be constructed? Your great view of the city skyline just might turn up later on as a view of a future adjacent building.

5. Dues and other costs. Condos can be notorious with exorbitant association dues, as you share the cost of repairs, maintenance, and improvements of the building with other dwellers. JM notes association fees are expensive but a tenant should maximize what he or she is paying for by using the facilities and coordinating with the administrator for any need, from repairs to what not. If you’re fortunate like the Salvosas, your association fees can also be very reasonable, in their case, about the same as with the dues for homeowners in private subdivisions. There are also related expenses like parking space, which you have to buy or rent separately. You’d be shocked at the cost, so plug this in your budget. And bet you overlooked the fact you have to pay value added tax (VAT) on top of the sale price, plus closing fees, and property tax.

6. Stage of development and completion date. You can of course buy a unit at an existing condo building and move in immediately. But like a brand new car, it always feels better to be the first owner of a condo unit. So if you decide to buy, do so at the pre-selling stage, not when it’s already complete. “Once the building is completed, the price can be double the original amount,” Cris says. JM shares they bought their unit at The Residences during the pre-selling stage at around P6 million, including interest and the cost of minor changes in the interiors. Consider also when the project will be completed, as you need to project your own plans against the target date.

7. Investment potential. JM shares they also considered if they could resell the condo in the future or rent it at good price. If you’re thinking of buying a condo as an investment, it is best to buy during the pre-selling stage and sell or rent out the condo when it is completed. The reputation of the developer and the resale record of its other condo projects should give you an idea if this one you’re considering has investment potential.

By Boyet Tejuco

Professionalism is the key to harmonious relationship. Based on the Architect’s Code of Conduct, architects have a moral obligation and “shall hold the client’s interest above his own.” Probably the worst practice in construction is the conspiracy between architects and contractors, especially when it comes to project cost and progress. These may result to manipulation of billings, inconsistencies of work schedule, and poor quality of work.

This is also one reason why it is ideal to have a separate architect and contractor. In doing so, clients are helping safeguard themselves and the architecture profession. As designer and representative of the owner, an architect uses his best judgment in decision-making. When an architect becomes both designer and builder, there is a danger that quality of materials and work may be sacrificed for cost.

There is no wrong or right answer, whether you are planning to hire an architect and contractor, or even assuming the construction supervision yourself. Owners will have to consider their resources and go with their instinct.

The client’s criteria When you hire an architect and a contractor, the criteria and means of looking for your candidate is common with other professions. He should be knowledgeable in his field, trustworthy, and loyal to the client. And this is something you will not find at face value.

Friends and colleagues would probably give referrals. You may even browse through newspaper ads, websites, and phone directories. From your choices, ask for their company profiles. Consider experience and expertise in relation to your requirements. You may opt to ask for a meeting to get to know your prospects more. Visit their completed or on-going construction projects.

If you have more candidates than necessary, you may narrow them down through bidding. Consider hiring a quantity surveyor or an engineer to do an estimate of your project. Use this as reference to compare submitted bids and see which is fair for you and the contractor. Note that the lowest bidder does not necessarily mean it is the best choice. If you have the time and patience, you can do your own estimate and ask suppliers for quotations.

Avoiding conflicts in construction Architects, contractors, and clients can maintain a good working environment if they want to. It starts with constant presence and good communication during meetings and site visits. The architect and contractor should remain sincere and vigilant in holding the owner’s welfare above their own. Invitations outside work like birthdays and other celebrations should not be venues for bribery and corruption.

On the other hand, clients should refrain from revisions especially when construction has already begun. Changes mean costs and delay. They should also be generous in giving out compliments to architects and contractors. This raises the group’s morale and spirit. Needless to say, they should also release payments on time. It is their money that makes all operations possible.

By Boyet Tejuco

Several methods of project execution have been devised to ensure quality of work, the shortest possible construction period, and lower cost to the owner. They require the architect to represent the client from preparing the legal documents to negotiations with government agencies. Differences lie in the client’s project financing setup and the payment of professional fees. Here’s what you need to know:

Project financing setup You can have a Design-Build by Administration arrangement, wherein only you, the client, can advance any money for payment of construction expenses. The architect may be asked to prepare a detailed cost estimate with an allowance of 10%, plus or minus his estimate.

Alternatively, you can agree on a Design-Build Service on a Guaranteed Maximum Cost arrangement, where you release a revolving fund to the architect at the start of construction. The architect also guarantees a limit to the project cost. With an excess by not more than 10%, the savings is divided equally between architect and client. However, if it exceeds more than 10%, the architect pays for the extra costs in excess of the said 10%.

Payment of professional fees For compensation, percentage of construction cost is commonly used, wherein the amount of the percentage is related to the size and type of the project. It is similar to the percentage fee concept being used by realtors, developers, and lawyers.

Under the Guaranteed Maximum Cost setup, the architect’s fee is either 10% of construction cost or may be included in the cost. It is higher than the fee for Design-Build by Administration setup which is only 7%.

Note that these fees do not include the architect’s regular design services. Said information is stated under the United Architects of the Philippines (UAP) Documents 207 Design-Build Services.

By Boyet Tejuco

Preparation for future homeowners is almost like planning for a wedding. It can be time-consuming and demanding, but not unmanageable. A great deal of time should be spent on planning and research.

1. Decide on your priorities
Especially for first time homeowners, ask yourself: How important is the house I’m planning to build? Is this really my dream house? Or am I planning to build something bigger and better?

Arch. Antonio V. Turalba, Jr., president of real estate office, Active Group, Inc., notes, “There are usually two types of home owners: the one who will settle for a small but ‘complete’ house or the one who would opt to have a big house and work piece by piece on the details. This is a common practice among medium class subdivisions inside and along the outskirts of Metro Manila.”

In this case, there is no right or wrong answer; it is a matter of choice. However, keep in mind that your priorities will have a lasting effect in your family’s lifestyle.

2. Do your research and be open to new information
Concerning the lot, familiarize yourself with local standards and laws. Design of any type of construction conforms to governing laws and regulation set by national and local government and other applicable governing bodies like the homeowners association of a subdivision. These materials are public documents and are readily available.

Prepare yourself also for the bureaucratic red tape when applying for building permits and legal documents. Avoid them by accomplishing all forms properly and submitting complete requirements.

By hiring a contractor, the owner may opt to pass on the responsibilities of applications. However, much of these documents like the tax declaration and others will still be coming from owner.

Educate yourself about construction as you go through the process. This will be your home. You should know it inside out.

3. Set your goals and expect the unexpected
In building your dream house, do not settle for second best. The best car or mobile phone in the market took months and even years of studies. The same degree of attention and industry should be set when building houses which may cost millions.

Building construction requires resources. During the design development phase, study your options very well before deciding. Set realistic goals to ease decision-making. If you’ve decided to pursue your dream house, you’re bound to choose the best and affordable materials. If you want it big and have the patience to work on the house piece by piece, you can work on the house phase by phase. You may choose to delay the painting of the exterior walls by working on one room at a time.

Decide on a system which is most convenient to you. Ask for a second opinion if you have to. When construction begins, keep in mind that any alteration means delay, additional work, and cost.

During construction and even its completion, problems do come. For one, the prices of some construction materials tend to change. Unforeseen problems happen so don’t put yourself under too much stress.

Building your dream house

A checklist for first time home owners
By Arch. Boyet Tejuco

Imagine a happily married couple saving money during the next two years for their dream house. Both have satisfying jobs and earning above average salaries. They find a nice lot in a good neighborhood, accessible to work and major establishments. They find an architect through referrals. They hire a contractor to supervise the house construction. Everything seems to be in order. That is, until the lot’s real owner knocks on their door step and charges them for illegal construction. It seems that the couple failed to double check the lot based on the Transfer Certificate of Title (TCT).

The dream house becomes a nightmare. The story ends not entirely bad. The matter is settled outside the court with the real owner getting paid twice the value of the lot for damages. Unbelievable? Things like this do happen but they can be avoided. In building construction, certain issues have to be addressed. Below are some of the main considerations:

The lot
With urbanization, areas which were considered far like Alabang, Muntinglupa, and Fairview, Quezon City, is now deemed accessible. There are still a good number of vacant lots in Metro Manila but the lot prices vary based on their proximity to major centers and road networks.

Ideal travel time from the proposed residence to place of work is an hour to an hour and a half. Prospective home owners are searching as far as the outskirts of Metro Manila like Rizal, Bulacan, Cavite, and Laguna. It should also be accessible to important centers like schools and hospitals, the market, and churches. Make sure basic utilities like electricity, water lines, telephone, cable, and Internet lines are accessible.

If you already have your lot, check and double check your TCT. Make sure that the property has no pending cases to avoid future headaches. Hire the services of a surveyor to ensure that the boundaries given in your TCT are accurate and matches the actual lot.
Before construction, the lot should also undergo soil testing to determine the kind of structure and number of storeys the lot can carry.

Time and money
In construction, these two factors are quite related. More budget means continuous work flow and shorter construction period. In the process, the owner can save more.

The owner should identify how he intends to finance the construction. Who among the family members can help shoulder the building expenses? How much is the annual household income? From the various housing loans available like PAG-IBIG and banks, find out which is the best for you.

Currently, an average house with an area of 60 square meters may cost between P700 thousand to P2 million (P12,000 to P35,000 per square meter), excluding the lot.

Based on this, you can set a realistic budget and decide how much you’re willing to spend for the house. Keep in mind that the cost of construction materials changes from time to time, so set aside allowances.

Manpower
The Philippines has a wealth of manpower from architects to contractors and laborers. Proof of which is the flight of designers and engineers to Middle East countries. Owners should first get the services of a licensed architect. Friends and relatives will probably give referrals. Inside subdivisions, you may opt to look for your candidate based on their existing works.

Architects are licensed professionals under the Professional Regulatory Commission (PRC), making them the best and only choice in the field of design. Currently, there have already been cases filed against non-architects who have misrepresented themselves. Appropriate lawsuits have been filed against the suspects. When in doubt about an architect or contractor, you can inquire from the PRC or the BIR.

Moreover, the law requires the representation of architects in almost all forms of transactions from the application of building permits to construction to completion. A contractor is similar to a wedding planner, acting as construction supervisor on the owner’s behalf. Although not everybody can afford a contractor, it is advisable to have one.

All transactions should be done under a contract. The Constitution also protects clients from possible abuses by contractors and vice versa. The architect’s or contractor’s scope of work responsibilities, mode of payment, and pertinent information are indicated here. When in doubt, ask for a copy of the contract and consult a lawyer.

Arch. Jenner P. Macaballug, managing principal of J.P. Macaballug Architectural Services advises, “Hire a 3D renderer or walk-through artist for added visuals to ease decision-making for owners. Few owners can understand the concepts of plans so walk-throughs allow them to see and feel the space.”

Space requirements and output
Filipinos are generally creative and receptive to new ideas. We adapt new ideas and “Filipinize” them. During conceptualization, there is a tendency for clients to lose sight of what they really need. Architects can help enlighten owners regarding practical design while addressing the requirements of the users. The owners’ input becomes highly invaluable during the design development phase. Spaces should be set according to the homeowners’ lifestyle and norms. Effective and sound design should work for the people who will live in the house instead of forcing them to adjust to the design.

Owners should also keep in mind whether the house will be newly furnished or they will reuse their old stuff. Make a list of things you still intend to use. Consider the layout of your spaces based on the furnishings you intend to bring with you and buy.

Consider spaces and door and window openings. In some cases, owners are forced to make last minute adjustments because some of their previous belongings cannot fit in the new house, like perhaps the bed that cannot fit inside the main entry. Worse, some are forced to dispose of it, resulting to additional costs.

Owners are free to consult a feng shui expert. If they must, get and incorporate the recommendations with the design before actual construction.

Building materials and technology
With the continuous innovations in building technology, there is a wealth of building materials from door and window openings to ceilings and roofing materials. Owners should take advantage of the opportunity to know the latest in building technology.

These include environment-friendly termite killers, solar-powered water heaters, and non-toxic paints. There are even pre-fabricated houses available in the market, prices of which are below half a million. In some cases, these materials are not only economical but earth-friendly.

Numerous establishments like MC Home Depot house a number of building suppliers under one roof, making purchasing for building materials easier. Specialty shops and suppliers can be sourced out via Internet, phone directories, and media advertisements.

In the Philippines, there are two major events that showcase the latest and best in building technology: the Philippine World Building and Construction Exposition (WorldBex) and Philippine Construction Exposition (Philconstruct), held in the first and last quarter of the year, respectively. So visit those expos to get a better idea of what materials and technologies are available in the market.