Best Posts in Thread: Camella Homes

3 expats I know have homes in Tiera Alta subdivision. The lots are bigger than most. The quality of build is better than most, and yet they still complain it is not up to western standards. The builder is Phil South and they have other subdivisions for the lower end market at places like Azumi subdivision and a few others. In my opinion they are as good as it gets for local, mass produced subdivision houses. There are a handful of western builders who do private contracts to build you a house but they are hard to find, expensive, and usually overbooked already if they are good.

My opinion of Camella is "low end builders" based on chats with others who have bought from them.

 

With some talking about Condominiums, I stumbled across this (The writer is a Realtor in Cebu City) earlier and thought it may answer some questions some are asking or wondering;

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Is it true that the lifespan of condominium in Philippines in only 50 years?​

16 February 2015 at 11:29

Lifespan of a condominium depends on the lease agreement between the developer and the land owner. Basically, 50 years is the initial contract and renewable for 25 years. So, if you are buying the unit you have entered the agreement just read the contract and seek legal advise. When it is more than fifty years, and it is obsolete and uneconomical then it could be partitioned among the common shares. 50 years is the lifespan of any corporation in the Philippines. Upon incorporation of any company, the initial lifespan is 50 years, renewable in blocks of 25 years. It has nothing to do with your ownership of the condominium unit itself.

In what situations involuntary dissolution is applicable?
(section 8 of RA 4726)​

Three (3) years after damage or destruction, no rebuilding or repair has been made to a material part rendered unfit for use
More than ½ of project rendered untenable – owners of more than 30% interest in the common areas are opposed to repair

Project in excess of 50 years, obsolete and uneconomical to repair- owners holding over 50% interest in common areas opposed to repair

Project is condemned or expropriated, no longer viable – owners of 70% interest in common areas are opposed to the continuation after condemnation or expropriation of a material part of project

That conditions for such partition are set forth in the Declaration of Restrictions duly registered?​

What is the effect of involuntary dissolution?​

Common areas owner or held by the condominium corporation are transferred pro-indiviso by way of liquidation and in proportion to their interests to the members or stockholders subject to the superior rights of creditors. Such transfer is deemed all liquidation and the condominium corporation is deemed to sell the entire project for the benefit of all the owners.

When Condominiums Become Obsolete​

What Determines the Lifespan of a Common Interest Development?​

“Obsolescence” is the process by which something loses its value and relevancy usually due to being supplanted by a better product or changes in its environment. Several times we have written about our concerns for the impact of that process on common interest developments.

First, let’s realize that the obsolescence of most common interest developments, as with other man-made structures, is inevitable. It can’t be stopped; it’s simply a matter of time. If you doubt that, ask yourself how many residential buildings that you know have lasted, say 100 hundred years or more. Look around and you’ll see only a few buildings that have survived the century mark–public monuments, and buildings that have historic worth or intrinsic value due to their unique location or architectural style. Most others have been replaced with newer structures.

A building reaches the end of its service life when it is no longer economically viable in its present condition.

Examples are: an apartment house so run down that the rents it can obtain from tenants will no longer sustain the maintenance necessary to make keep it safe and habitable; a commercial structure in a neighborhood that has too much crime to be able to conduct business normally; and, single-family homes in a deteriorating neighborhood that cannot sustain their value and are not a desirable place to live. Another example, is a low-density, multi-family complex with enough land to accommodate higher densities, where the value of the land alone begins to approach the value of all of the interests of the existing development–values depressed, perhaps, because the complex is reaching the end of its economic service life.

Delaying the Inevitable​

Location and style can preserve a home that has otherwise outlived its economic usefulness. Some old buildings survive today because they are located where they can sustain market value as a single-family home, or where their value as rental property justifies their continued use.

In some places, this is not the case, they have been removed and replaced with larger, multi-family, or commercial structures. Developers began buying these old homes, situated on large lots and replacing them with apartments. Several hundred were lost in this process. Left to market forces alone, most would have been replaced with multi-family structures by now.

Other structures survive because they have public importance, like our government complexes, or buildings that have been preserved because of their historical value. But again, these structures have been saved through government or political intervention. Economics alone would not justify their survival.

Most community associations can lay no claim to such importance, either historically, or because the neighborhoods in which they are built are not unique. Also, historical preservation usually favors single-family homes, or unique commercial or public buildings. Apartment buildings have no such government or public support, and neither will common interest developments.

So again, obsolescence is inevitable for most community associations. The only question is how long will it take? The normal economic “service life” of a building depends on several independent factors—the materials used in construction, the quality of maintenance, neighborhood conditions, and its fitness for the use for which it was intended in the neighborhood, to name a few.

Obsolescence Usually Leads to Re-Development​

There used to be single-family homes in the financial districts but the neighborhood changed dramatically to commercial uses and the one-family home became obsolete because that same plot of land could be used for an office building, a multi-family residential building, or could be combined with other plots to build a manufacturing plant, or as it turned out, high-rise office buildings—all with greater economic rewards to their owners. Without government intervention for political reasons, properties left to the open market will develop into what’s known to city planners as the “highest and best use” and that usually means replacing smaller buildings with larger ones or residential buildings with commercial structures.

We have seen redevelopment go in reverse—where a former industrial site is re-developed into a residential development, but that usually includes various mixed uses to go along with the homes—retail, offices, public structures, like schools—so that the economic value of the replacement exceeds that of the old structures. But mostly, smaller, lower density residential structures will be replaced with “higher and better” uses.

The Variables that Influence Service Life​

What influences the service life of a common interest development? Many of the same factors as with other buildings—quality of construction, the adequacy of maintenance, a changing neighborhood; or newer buildings built nearby. But in the short term, the condition of the buildings is the primary factor—the result of construction quality and maintenance–which is in turn is impacted by the owners’ willingness to invest the resources necessary to maintain it properly.

An independent variable—the status of the neighborhood—is probably beyond the control of the typical community association. But the primary dependent variable, funding for maintenance, is squarely within the power of the owners to influence, and the ability of the association to adequately maintain the project is heavily influenced by that.

If a complex is maintained properly it might influence the neighborhood around it. And if the need for housing in that neighborhood remains unchanged for many years, and if values stay high, the community association may co-exist and thrive for a long time. But our research has shown that this can be undermined by the gradual under-funding of adequate maintenance and repair resulting from the unwillingness of the owners to tax themselves to pay for it.

The Funding Problem​

The board can only do so much. If it brings the need to raise additional funds to the membership, and it is defeated, the directors can ask themselves if they adequately explained the problem or if they sufficiently researched the costs and the projected need for additional funding. But in the end, it is up to the members unless the board is willing to antagonize them by raising the assessments 20% over the prior year without a vote or imposing a 5% special assessment whenever it is needed. The board of directors can do this, but the adverse political consequences may, and often do, dissuade them.

Also, the economy can have a grave impact on funding. When the instances of foreclosure rise, so does the rate of assessment delinquencies, further exacerbating the funding problem.

Association politics and the economy are therefore critical issues that directly influence the fiscal health of an association and its probable life expectancy. If we use funding adequacy to assess the probable service life of a common interest development then, we can clearly see that many will fail for lack of adequate financial support in the coming years. Whether that will be 50, 75 or 100 years depends almost entirely on the will and economic wherewithal of the owners.

There are many associations approaching 40 years old and beyond today and that population has increased dramatically with the recent addition of hundreds of condominiums converted from older apartment buildings. Further, the assessment delinquency rate is higher now than at any time in many years. The some places, Civil Code requires that an association’s replacement reserve budget must include any component that has a service life of 30 years or less. Can a forty year-old building last another 30 years? In some cases yes, but how many developments can be expected to last a total of 70 years? At what point does the entire development become a reserve component?

When a common interest development deteriorates to the point that basic safety and habitability are called into question, the local government authority must act to either force the owners to repair it, or failing that, to close it down. We have seen such instances in complexes that were only a few decades old so we know that it can happen, and easily within our lifetimes. Also, once that deterioration spiral starts, it can increase with exponential speed as the condition begins to reflect poorly on the market value of the individual interests such that units will become impossible to sell and the owner’s interest in providing additional economic support will wane accordingly.

All of this suggests that the political will of the members, and their individual financial condition, will have a far greater impact on the useful life of a common interest development than any other factor. If they are not convinced that funding the association for future costs is worthwhile, the board’s ability to respond to the factors promoting obsolescence will be cut off. Perhaps this is just good economic theory in action. But if so, then many of our community associations will eventually be re-cycled into something with greater utility. Anyone who has an investment in a common interest development must be aware of this, because the profit earned through re-development is, at least in part, the value lost by prior owners.

In what situations voluntary dissolution is applicable?
(section 14 of RA 4726)​

When the Master Deed is revoked upon registration of an instrument executed by the condominium corporation and consented to by all the registered holders of any lien or encumbrance on the land or building

When the condominium corporation is dissolved through an action for dissolution filed by the affirmative vote of all stockholders or members at the general meeting called for the purpose provided all the requirements of section 62 of the Corporation Law are complied with.

What is the effect of voluntary dissolution?​

Condominium Corporation is deemed to hold a power of attorney to sell all separate interests of stockholders/member; and Full liquidation of the Corporation by sale of entire project, again subject to the right of the Corporation itself and individual creditors

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Well I would have said the Buyer would have been crazy to buy it but

 

I'd avoid Camella like a plague. However many of these subdivisions are trash as well unless your in an upper/rich class one then potentially difference. Camella however are very shoddy builders as far as wiring, plumbing, and other materials. You can't buy lots and build your own house anymore and it MUST be one of their builds. Every room is very small as is the lot. I've asked multiple times if I did buy a Camella House if I could change the interior layout so when built I'd have fewer rooms but they would be bigger and the kitchen and living room would be bigger and they say only after its paid off in full however their would likely be structural issues making that very difficult.

Like said though most of these subdivisions when built may look nice day #1 but after sold no more repairs happen and very few owners maintain their houses. Within 5 years its like a ghetto and you may not even have that security guard anymore because half the owners aren't paying association fee's anymore or those fee's walk off.

 

And then the next question: Does the 50 years start when they start building the condo or when they finish building it. There could be a decade difference.

 

When you want to sell crap houses for a better price just renew the painting and cover cracks and clean the area. These works can be accomplished quite cheap.

As long the shitty house looks really shitty then I would agree. But with painting and wall covering it is possible to hide real sh*t quite well.
And then it depend on the house if you can still turn it into a bijou or not. Sometime I'm quite surprised about how nice a crap house can be turned with well renovations.

 

If you consider buying a house anywhere in the Philippines, there are many pitfalls.

• Even to the layman's eye it is pretty obvious that many Filipino's either don't appreciate good quality finish in a house (meaning windows, kitchen, bathroom) or they've never seen something beyond mediocre quality finish.
  
  
• Builders just want to build cheap and fast, so they can sell at "market price" and still make a nice profit. The apparent lack of building standards in the Philippines makes it easy for builders to cut corners while building and use low quality materials.
  
  
• Will buyers have a say before/during the building phase, can they opt for other than standard finish.

• When buying in a subdivision, pay attention to things beyond your own house and lot.
  • How is rainwater dealt with, is there a proper drainage system
  • Has a Home Owners Association been established and does the Association own the roads/streetlights inside the subdivision.
  • Will there be guards / wall around the entire subdivision.
    
  • How high will the monthly "subdivision dues" be.
    
• I won't touch on legal pitfalls of buying real estate, plenty information around about those.

 

Don't waste your money on those sort of buildings, those sub division are going to be the ghettos of the future, quality of those dwellings are poor poor, and nothing will be maintained once the builders have left, philippine standard houses are very very small indeed, if you were a single man, then maybe would be for you, most of those units will be purchased with Pag-ibig, and no picking your neighbors........would suggest buying a single property with one fence, pay the extra, will be easier to sell too if and when the time comes, especially if you fancy yourself as a bot of a gardener