Without a doubt, condo living is effortlessly becoming one of the go-to residences of choice worldwide. Aside from the incredible convenience of living in the heart of the city, many Filipinos opt for a condo in Manila because of the hustle and bustle. For instance, most establishments are open 24/7, so no matter your cravings, they can easily be satisfied by walking only a few steps away from home. Not to mention some of the perks you can enjoy, including outstanding amenities that are available right at your disposal when living in a condo in Metro Manila.
However, if you are planning on investing in a condo, it is never easy to impulsively buy a property. Given that, you may want to learn a few things about condo fees, additional fees, homeowners association fees, and other monthly fees that come with owning a condo and paying for its general upkeep. Continue reading below if you want to learn the nuts and bolts of typical condo association fees.
What do condo owners gain from condo fees?
You might be thinking, "Residential property owners do not have these kinds of monthly fees, but why do condo owners have them?
In a nutshell, these association dues usually cover the maintenance of the building, fire insurance, parking per square meter, and the salary of the security guards, as well as maintenance personnel. Moreover, these fees also ensure that the common facilities that every condo owner enjoys are well-maintained and cleaned regularly. Given that, property maintenance is one of the primary reasons for these additional monthly expenses for condo unit owners. Although this may sound a bit much for other people, these are actually necessary fees to improve the living conditions in your tower. On that note, association dues ensure that you get the most out of your urban living experience inside condo buildings.
What happens if a condo owner does not pay condo fees?
Generally, late payments are subject to penalties. Thus, if you fail to abide by the due date, you should expect to pay higher fees than normal. And although most condos ask for a 4% increase for late payments, it still depends on your developer, as these other fees can vary. Moreover, the company may have to force you not to use amenities since the monthly payments are attuned to the upkeep of the facilities. Not only that, but you should know that the fees that homeowners associations collect are taxable. Hence, the Philippine government also collects value-added tax from the monthly fee you pay as a unit owner.
Different condominium fees you must know:
Parking Fees
One of the major things you have to pay for when living in a condo is the parking fee. So apart from maintenance, paying for a parking spot will always be part of the cost of living in a condo. Notably, this fee is measured per square meter, so if you have more than one car, you may have to pay more for parking lots. Usually, the parking costs Php 3,000 to Php 5,000, depending on the developer. With that, this factor is something you must think about before buying a condo, since you may have to add a lot for your other expenses.
Homeowners association fees (HOA fees)
These homeowners association dues are very common in most residential areas. Notably, these are people who take charge of different matters concerning the neighborhood. Hence, HOA fees are entitled to make your condo living experience pleasurable. For instance, these dues are intended for the upkeep of your swimming pools, gym, building management, and playground within the condominium tower. Aside from that, these fees also pay for essential services like security personnel, janitorial tasks, and the like. But if you are wondering, the condo maintenance fee calculation depends on the size of the amenities your condo offers. As for high-end condos in Manila, the association dues can start at Php 90 per square meter or higher.
Real Estate Property Tax (Individual and Commercial)
As mentioned earlier, these condo dues also come with real estate property taxes. To be more specific, condo owners must pay for their individual condo unit's tax as well as the commercial tax for the land where their condo is standing. The prices of these monthly contributions also vary depending on the developer and the location of your building. However, with Vista Residences, the fees are only Php 130 per square meter (residential) and Php 145 per square meter (commercial). Furthermore, individual real estate property tax is collected by the local government units to fund basic public services, hence making it essential.
Notably, these fees must be paid on time, as they may incur penalties for late payments. But on a lighter note, compliance with payments can result in perks such as discounts ranging from 10% to 20% off the base tax.
Fire Building Insurance
Although some condo buildings do not include fire insurance in their monthly fees, this is also important. For instance, you never know what might happen in the city, especially because of the extreme heat we are experiencing here in the Philippines. With that, if your condo developer does not cover fire insurance, make sure to get one for your own condominium unit. On the other hand, Vista Residences requires a monthly fee of PHP 5.43 for the fire insurance of common areas in the building.
First-time buyers should undoubtedly become knowledgeable about the different condo fees that could possibly be added to their monthly expenses. With that, reading about typical condo association dues is the best way to precisely budget your money. After all, buying a condo is truly an investment, as it is not inexpensive at all. However, the benefits and perks of living in the city far outweigh the cons of having to pay condo fees. What is more, every fee you will pay is attuned to making condo living the best for you, like maintaining the facilities, ensuring your safety, and providing you with a clean, calm community amid the hustle and bustle.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
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