Last Updated on March 4, 2019 by Lamudi
If you are wondering how much monthly salary you need to be making in order to afford a condo in Metro Manila, then Lamudi can help you.
Lamudi Philippines, using price data from over 141,000 listings, has averaged the asking price per square meter (sqm.) of condos in cities in Metro Manila. The company determined how much monthly income a prospective condo buyer should have in order to afford the monthly mortgage payment for a 60-sqm condo.
The computation used 6.5 percent annual interest rate fixed for five years and a loan tenor of 15 years, and assumes that the condo buyer has made 20 percent down payment and can set aside no more than 30 percent of their monthly income for mortgage repayment.
Here is what the analysis has found.
The Philippine capital’s average condo price is PhP 113,000 per square meter. Multiply that by 60, a 60-square meter condo unit can have an average price of PhP 6,780,000. The 20% down payment is equivalent to PhP 1,356,000. The remaining amount that will be applied to a housing loan is around PhP 5,424,000 or PhP 30,133.33 monthly for a 15-year loan tenor not including the fixed interest rate, insurance, taxes, and other payables.
Ideally, your monthly mortgage should not exceed 30% (if your loan is above PhP 1,250,000) and 35% (if loan is below PhP 1,250,000) of your monthly income. That means, metro-wide, a prospective condo buyer needs to have a salary of at least Php 100,444 to PhP 150,000 per month in order to afford a 60-sqm condo. When looked at individually, the cities of Metro Manila show great diversity.
For a couple earning a combined income of Php125,000 per month, condos in Mandaluyong, San Juan, Pasig, Parañaque, Muntinlupa, and Las Piñas are well within their budget, whereas buyers can afford a condo if they are making PhP 124,840, PhP 123,596, PhP 113,733, PhP 91,006, PhP 86,090, and PhP 70,580. On the other hand, people looking into buying a condo in Makati or Taguig should have a monthly income of PhP 196,820 and PhP 178,000, respectively.
However, the data gleaned from Lamudi’s analysis is just an estimate. Real property taxes and insurance costs will vary depending on the location and type of property, not to mention that buyers do not have uniform lifestyle and spending habits.
Another factor that determines how much you can apply for a housing loan is your age. Often, if you are aged below 40 years, you can apply for up to a 30-year loan tenor. Remember, you can only apply and be qualified to get a loan based on your monthly salary. To simply compute what the maximum monthly amortization your salary can handle, multiply your monthly salary by 30 to 35 percent.
Furthermore, some people have more savings than others, allowing them to put a larger down payment, which saves them thousands on interest payments every month. These people can also save on mortgage insurance as having a large equity on a property makes them financially attractive to lenders.
Nevertheless, the analysis gives potential condo buyers an idea of how the associated costs of purchasing a condo property differ between the cities of Metro Manila, and how much monthly salary they should aspire to, in order to afford that condo of their dreams.
No data was generated for Marikina, Valenzuela, Pateros, Malabon, Caloocan, and Navotas due to lack of condo listings in these cities.
For further information regarding the process, requirements, prices, and fees associated with buying a condominium unit, as well as other related articles, visit The Complete Condo Buying Guide by Lamudi.
