Hidden Fees Beyond Monthly Amortization: Mga Dagdag-Bayarin Kapag Bumili ng Condo

Thinking of buying a condo? Monthly amortization is just one part of the cost.

Many buyers overlook extra fees that can quickly add up. These hidden charges can affect your budget and lead to unexpected expenses. Planning stages often overlook these costs, which range from taxes to association dues.

In this article, we will break down the hidden fees of condo ownership to help you budget wisely and avoid surprises.

Mga Dagdag Babayarin Kapag Bumili ng Condo

Buying a condo isn’t just about paying the monthly amortization. There are several hidden fees that can add up and affect your budget. Knowing these costs early on helps you plan better and avoid financial surprises.

Common Condo Ownership Fees

1. Condo or HOA Fees (Bayad sa Asosasyon ng mga May-ari ng Condo)

Monthly dues cover building maintenance, amenities, and shared space upkeep. Some condos include basic utilities like water and trash collection, but it varies. The fees depend on factors like unit size, amenities, and the building’s overall expenses.

2. Special Assessments (Dagdag na Singil para sa Biglaang Gastos)

These are unexpected charges for major repairs or building improvements. Unlike regular monthly dues, special assessments can pop up without warning, often costing a significant amount.

3. Condo Fee Increases (Pagtataas ng HOA Fees)

Monthly dues can rise over time due to inflation, major repairs, or upgrades. It’s wise to check the association’s financial history and reserve funds to gauge how stable their fees are.

4. Parking Fees (Bayad sa Parking Slot)

Some condos charge separately for parking, which can be a one-time payment or a monthly fee. Ensure you understand if the condo includes parking or if you need to purchase a slot.

Additional Ownership Costs

1. Maintenance and Repairs (Gastos sa Pagpapanatili at Pagkukumpuni ng Unit)

Condo fees usually cover only shared areas, so repairs inside your unit are on you. A common rule of thumb is to set aside 1% of the property’s value annually for maintenance and unexpected fixes.

2. Utilities (Bayad sa Kuryente, Internet, at Iba Pa)

Your condo dues may cover some basic services, but you’ll likely have to pay separately for electricity, internet, cable, and other utilities.

3. Homeowners Insurance (Seguro para sa Unit at Ari-arian)

The condo association’s insurance covers common areas, but it won’t protect your unit or belongings. Getting homeowners insurance adds protection and is often required if you’re financing the property.

4. Property Taxes (Buwis sa Ari-arian)

Property taxes are annual fees based on your unit’s assessed value, and they can increase over time. Rates vary depending on your location, so it’s essential to factor them into your yearly expenses.

Upfront and One-Time Costs

1. Reservation Fee

This is a non-refundable payment to reserve your unit before paying the down payment. Some listings advertise “no reservation fees,” but always confirm the terms with your agent.

2. Move-in or Closing Fees

These one-time payments cover administrative and legal costs when you take ownership. They can include title transfer fees, notary charges, attorney’s fees, appraisal costs, and utility connection fees. Depending on your contract, these costs may be a fixed amount or a percentage of the property price.

3. Real Property Taxes (RPT)

Real property tax is a recurring fee but is often discussed upfront. It’s based on your unit’s assessed value and can increase over time.

Why Knowing These Fees Matters

Hidden fees can quickly add up and inflate your overall cost of owning a condo. Being aware of these extra expenses allows you to prepare a more accurate budget and avoid financial surprises.

Always carefully read the fine print in your contract and feel free to ask your agent detailed questions about all potential charges. 

Remember, Ka-Builders: a well-informed buyer is a smart buyer!

References

DMCI Homes. (n.d.). The Horror Of Hidden Costs In Condo Ownership — DMCI Homes. DMCI Homes. Retrieved February 18, 2025, from https://dmcicorpsales.com/the-costs-of-condo-ownership-what-they-dont-tell-you-but-they-know-they-should-dmci-homes/

Homes.com. (n.d.). Avoid Surprises: Understand These 7 Hidden Costs of Buying a Condo. Homes.com. https://www.homes.com/blog/hidden-costs-of-buying-a-condo/