What To Prioritize In Your Condo Expenses
Still contemplating on whether to stay in the metro and purchase a condo or just buy a lot and build a house in the province? It’s a hard decision considering all the pros and cons.
If you are one who wants a peaceful environment, who wants less traffic, cheaper cost of living, bigger spaces, access to nature, etc., then provincial life is for you (IMO).
But, living in a condo is tempting and convenient especially if your workplace is in the busy streets of Metro Manila. You also get to use its amenities for free like the pool and fitness center. To help you out, here are some of the condo expenses that you need to prioritize.
Budgeting 101: Condo Expenses To Prioritize
Amortization is the fixed amount you pay monthly to pay off your principal loan and the interest over a period of time. Each developer offers a different payment scheme.
Before signing in, make sure to read everything thoroughly, ask for a breakdown, and most importantly, choose a payment scheme that will match your budget or monthly income.
Condo Association Dues and Utility Bills
Once the unit has been turned over to you, you will become a member of the Homeowners Association and will be required to pay the association dues. This is the monthly payment of the tenants to contribute to the maintenance, security, improvement of the building, etc.
Electricity and water bills should be paid along with your monthly association dues at the management office of the condo. The amount is somewhat higher because the bill’s computation includes the common area electricity, maintenance of the pool, water in common areas, etc.
Please note that this set up varies in every condominium. It is best to ask your broker/agent first.
Although the association dues include insurance, this only covers the building and the building common areas. For individually-owned units, the owners are responsible to have their property insured.
For peace of mind and financial support when unfortunate incidents happen, one should prioritize getting condo insurance. You can get a Malayan Insurance Home Protect Plus free quotation here.
Aside from the usual property insurance coverage, they extended to:
- Burglary & Housebreaking
- Personal Liability
- Accidental Breakage of Fixed Glass
- Alterations & Repairs
- Alternative Accommodation
- Architect & Surveyor’s Fees
- Automatic Increase Clause (For Contents Only)
- Debris Removal
- Expediting Expense
- Fire Fighting Expense
- Professional Fees
- Replacement & Lock Keys
- Temporary Removal Clause
- Outbuilding Clause
- Special Assessment Clause (for condominiums only)
Real Estate Tax
As you are now a property owner, you are liable to pay the Real Estate Tax. This is paid directly to the local government at the city or municipal treasurer’s office. Note that you will incur charges if you did not settle on time.
These are just some of the things that you need to consider so you can adjust your budget.
It may seem like a lot but all these condo expenses are made to make your living conditions convenient, comfortable, and safe.
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