We all know that owning a house and lot is not that cheap. With the monthly payment, maintenance, and daily expenses, the list goes on and on. That’s why many of us are hesitant to invest in properties. But how expensive is acquiring a property in the Philippines?
When it comes to buying a property, your expenses will depend on different factors. In computing your expenses, you have to consider the type of home, location, terms and condition of your housing loan, among others.
In order to educate home buyers, our team at I Am A Homeseller present to you this general list of possible expenses that you need to know and prepare when you decide to invest in a house and lot property in the Philippines.
Mortgage or monthly payment
Your mortgage refers to the monthly payment you make to your home loan or, if in-house, your home property value. It will depend on the terms and the amount of your loan. The shorter the term the bigger the mortgage. The longer the term the smaller the monthly payment.
Different banks have different home loan interest rates. You have to find the best bank that offers the lowest interest rate so you can save more on your house. You also have to strategically decide on how long you’re going to pay for the loan.
If you are going to avail for a Pag-ibig Housing Loan, their interest rate starting July 1, 2017 will be 5.5%. This is lower as compared to bank loans.
Depending on your property type and loan terms, mortgage usually costs 50,000 to 5,000 a month.
Located near the Pacific Ring of Fire, we often experience earthquakes and volcanic eruptions, not to mention the typhoons that hit the country every now and then. With this, it is wise to protect and invest your home with insurance.
If your property is insured, you get financial compensation when your home experience fire or environmental damage. You won’t have to think about the repairs for your home, because your insurance will cover it.
Insurance price will depend on your provider and the terms of your chosen policy. You can be flexible with is as long as you want.
Property insurance usually costs 2,000 to 500 a month.
Property Tax or Amilyar
Properties, residential or commercial, are taxable. And you need to pay for property tax. According to Real Estate Brokers Association of the Philippines, depending on the type of your property and location, property tax usually costs around 1,500 to 1,000.
Homeowners’ association fee
As part of a residential community, each homeowner is required to pay for a fee for the maintenance of the facilities being used by the whole community. Whether you have a townhouse, duplex, condo, or other rent-to-own property and it belonged to a residential community, you have to pay for a homeowner’s fee.
Homeowner’s fee will depend on the company where you acquired your property. But usually it is estimated at 2,000 to 500 a month.
It is one of the most important bills that you need to settle. It includes electricity, water and other utilities that your household use.
Utility bills vary from household to household. But according to the computation of Household Final Consumption Expenditure 2014, the estimated utility bill of one household a month ranges from 6,000 to 1,000.
There will be times that you will have to do some repairs on your home. Whether it is a clogged drain, a damaged roof, or broken faucet, you need to repair these damages. Also, you need to keep your home clean and well-kept. So you need to budget for the maintenance of your home.
According to Household Final Consumption Expenditure 2014, the estimated maintenance cost of a house and lot property is usually between 2,000 to 300 a month.
There will come a time that you need to change the layout of your home. You will have to do repair, replacement or remodel of the interior or exterior of your property. This will be an additional cost for you. Renovation cost will depend on the degree of change you want to do with your property. If it is a minor change, it will cost around 2,000 to 6,000. But if it is a remodel, you need to ready around 12,500 to 20,000. This can be monthly, depending on the kind of remodel you want.
These are just some of the expenses that you need to prepare when you decide to become a homeowner. These may be overwhelming to you. But you don’t have to worry, as a trusted, licensed broker, I know a lot of cheap house and lot properties in the Philippines, including in Pampanga, Tarlac, Zambales, Olongapo, Subic, and Bataan. You can avail an affordable house and lot for as low as PHP 2,570.
You can check our site to browse for a cheap rent to own property on the location of your choice. And book that property right away by requesting a site tripping. You may also call 0918-963-6760.
Don’t worry, I do site tripping for FREE.
Enjoy house hunting everyone!