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Cost of Condo Living: 5 Fees You Should Know

Cost of Condo Living: 5 Fees You Should Know

Condo living has been a popular choice for people who are always on the go. It provides convenience since condos are typically located at the heart of the city and offer the comforts of a home. In addition, condominiums are relatively less expensive than residential homes, although they may still cost you money. 

You have to consider many factors when buying your first home. If you think a condominium is a right fit for you, then it’s best to know what fees and other expenses you’ll have to pay to help you with your decision-making.

Here are five must-know fees in a condo if you’re considering living in one.

1. Association Dues

The homeowners’ association (HOA) is seen in most residential areas, consisting of homeowners who take charge of matters in the neighborhood. Association dues are the most common expense you’ll hear from condominium owners. These are the dues that the HOA collects from homeowners, along with other fees for the general upkeep and cover the costs of repairs for common areas.

These also include other services such as security, janitorial, and the like, which may be outsourced to qualified personnel. The law provides that membership in the homeowners’ association is voluntary and you won’t have to pay for the association dues. However, it becomes mandatory and automatic as stipulated in the Deed of Sale. 

Association dues can be pretty pricey depending on the amenities and size of other facilities your condo offers. For example, the association dues for high-end condos start at P90 per square meter or higher. On the other hand, dues for low and mid-end condos can range from P35 to P65 per square meter.

Furthermore, the HOA can prohibit you from using common areas if you don’t pay your dues. Republic Act No. 9904 states they can only use these common facilities, provided they pay the necessary fees and other charges. 

2. Individual Condo Unit’s Realty Tax

You have to pay an equivalent real property tax for every property you own, whether it’s a building, condominium unit, or house and lot. Real Property Tax (RPT) is a tax collected by local government units (LGUs) to fund basic public services. If you cannot pay this type of tax, your property can be auctioned off, which is why some investors can buy these properties at low prices. 

It’s important to pay your taxes as early as possible to avoid penalties. Paying the RPT on time has perks, such as discounts ranging from 10% to 20% of the basic tax. Also, late payments can accrue interest of 2% up to 72%, depending on the months missed. If you go beyond 36 months, the LGU has the right to auction your property to cover the tax and the expenses from selling.

As a condo owner, you can settle the real property tax on your unit directly with your LGU. The payment schedule depends on the payment scheme that you avail. You can make a full payment due on or before January 30th or quarterly, which is due on or before the last day of each quarter. Note that you start paying the RPT once you’re done paying your home loan

Usually, municipalities in Metro Manila have an RPT rate of 2%, while provinces have an RPT rate of 1%. To compute the RPT you owe your LGU, you can multiply its rate to the assessed value of your property. 

3. Shared Realty Tax on Condominium’s Land

Taxable properties also include land, building, building improvements, and machinery. Because of this, you’ll have to pay your share of the realty tax on the land where your condo is standing. This is on top of the realty tax you pay on your condo unit, which may already be added or paid separately. 

4. Shared Realty Tax on Common Areas

Another type of tax you have to consider when buying a property, such as a condo, is the realty tax on common areas. There are cases where you won’t have to pay for this separately since this may be included in the RPT tax of your individual unit. It can also be part of your HOA fees.

However, there are some cases where your LGU may assess taxes on the common area. In this case, your condominium association or the corporation may collect this as fees and will be the ones to settle it with your respective LGU.

5. Parking Fees

Apart from taxes, parking fees are part of the cost of living in a condo. Although some condominiums include a parking slot in your purchase of a unit, it’s typically limited to one slot. Because of this and the limited available slots, the prices for parking lots can be pricey, especially if you own more than one car.

Parking prices can range from P3,000 to P5,000 per month, which may also depend on the location of your condominium. Some condominiums may have free parking, but it’s on a first-come, first-serve basis. This means the parking space may be used by others as well.

Fees on Fees

The appeal of a condominium comes from its convenience and comfort. Being at the heart of the city, you’ll be able to get around prime locations easily since it’s near parks, schools, work, malls, etc. Aside from that, you won’t have to worry so much about maintaining your home and its surroundings. 

However, there are fees you have to consider when deciding on a condominium. Apart from the money you shell out to buy the property, you’ll also have to pay additional fees once the title is already under your name. As such, you must clarify what is included in your condominium payment.

If you’re looking for a pre-selling property and unit, Mandani Bay is located in the middle of the bustling city of Cebu, a great location for luxurious condo living. Check out its condos for sale in Cebu today.