The Monthly Cost Of Owning A Home In The Philippines
We all dream of one day finally owning a house where we will make a lifetime of memories with our loved ones. Owning a house is one of the main reasons why we get up from bed every day and battle morning traffic just to get to the office and earn a living. Unfortunately, buying a house is not as easy or as affordable as it was when our parents and grandparents bought their first house.
This helpful infographic from BDO illustrates the monthly costs of owning a residential property in the Philippines. The values are estimates which will vary depending on size, location, and property value. Banks can give a maximum loan amount of 80% the purchase price. Based on BDO Housing Loan’s current 1-year fixed rate of 5.50% for a loan term of 15 years, a 150-sqm house and lot that sells for ₱5,000,000 will have a monthly amortization of ₱40,854. If you want something smaller, like a 65 sqm townhouse that sells for ₱3,000,000, your monthly payment will be ₱24,513. A 23 sqm condominium unit that sells for ₱1,500,000 will have a monthly payment of ₱12,256.
Apart from the monthly amortizations mentioned above, you also have to pay insurance for your property. The BDO Mortgage Redemption Insurance Premium amounts to ₱1,980 per month for the ₱5,000,000 house and lot. It’s ₱1,188 for the ₱3,000,000 townhouse, and ₱594 for the 1,500,000 condo unit. This excludes premiums for fire insurance.
Furthermore, you also need to settle your property tax. Based on the estimates by the Real Estate Brokers Association of the Philippines, this will cost you another ₱1,000, more or less, each month.
If you include other expenses that come with owning a house, you also need to pay for homeowner’s association fees, utilities, maintenance, and renovation. Association fees are collected for the regular upkeep of the condominium or the village / subdivision where your house is situated. The amount that you need to settle will depend on your property’s location and lot area. The costs can run from ₱500 to ₱2,000 each month.
You also need to set aside money to pay for your utility bills. That includes electricity, water, cable TV, internet, and telephone. The total amount will vary based on your consumption and subscription plans, so prepare to cough up ₱949 to as much as ₱5,691 each month.
To keep your house in the best condition, you have to spend on maintenance and renovation as well. Estimates for maintenance fees, which include regular cleaning and minor repairs, range from ₱292 to ₱1,749. If you need something repaired or renovated, or if you want to redesign the landscape, prepare to spend a few thousand pesos as well. Cost will vary depending on the scope of the renovation work.
A house is a huge investment, an asset that will have a huge impact on your finances for the next 10, 20, or 30 years. This is why you need to think very carefully about the kind of house that you want to own, where you apply for a house loan, and just how much you are willing to spend for it. If you want to look at alternative options for housing loans in the Philippines, you can also check other choices in the market and compare so that you can make an informed decision.