If you have fancied living in a condo, surely it has crossed your mind whether it’s more ideal if you just rent it out for a few months or perhaps buy one for yourself.
DMCI homes takes you through all of the payables with figures of renting and buying to see which one would better fit your needs:
Initial Purchase/Rent Costs
If you finally decide to buy a condo, the first thing that you need to settle is the purchase cost. In the tradition of real estate in the Philippines, you normally have to pay 10–30 per cent down payment (DP). Initial renting costs, on the other hand, require deposit. For example, an owner can charge 15,000 for initial reservation costs.
Fees Upon Move In
The buyer will have to settle membership and monthly association fees. Most developers also put the yearly payment of realty tax to the owner once moved in. Real property tax is paid to the local government unit with rates varying for every city or municipality.
For a tenant, he may or may not pay association dues depending on agreement with lessor.
Monthly Costs
The buyer will need to enroll the 80% balance of the TCP to the developer’s in-house financing, bank financing, or thru Pag-IBIG. You can also check your preferred bank with their condo financing rates and their terms of payments.
The tenant, on the other hand, will still pay the same monthly rent. Remember that owners can increase rental rates after sometime as allowed by Philippine laws.
Next steps after full payment
A notarized Deed of Absolute Sale will be released one year from the date of full payment for your condo purchase along with the transferred title and tax declarations under your name. After 12 years (two years down payment, 10 years installment) of paying your monthly mortgage plus interests and taxes, this will enable you to own a condo unit.
Considering all the initial, monthly, and yearly costs, how much will it take you to buy a condo unit? What is the total price when you decide to rent a condo unit taking in all of the factors above? Let’s find out with the simplest computation based on the values provided from our previous examples:
