The Condo Games
Yes, a name inspired by a recent film. What is the game here? I have developed a theory based upon the actions taken as a whole prior to and the subsequent buying of a condo with the final and long-lasting experience of developer control.
Condo units in the Philippines for most projects and perhaps all are de facto trusts and not true ownership. The projects once turned over become condominium corporations with developer controlled Boards slowly grooming selected Unit Owners for appointment prior to elections.
The Games continue during this long period of several years with the corporations treated as cash cows for milking. When the milking ends a building may be in such disrepair and deficient in its construction that years and much money are needed for refurbishing if possible.
The endpoint is for the building to be completely renovated or sold. The closer one comes to this event sees values dropping with Unit Owners losing and not gaining on their investments. This financial evaluation was done in a previous post.
So who wins in the end? Developers once again lay claim to the prize of property to be redeveloped and sold for the process to begin anew.
Welcome to a new world.
No comments:
Post a Comment