When investing in a condominium unit, buyers should be ready to pay for other fees outside of the unit price.
Arlyn Santos, national treasurer of Real Estate Brokers Association of the Philippines, said these fees are not exactly “hidden,” but buyers tend to overlook the other fees when looking at condos.
“It’s not really hidden… in the contract price you are given the price of the land, and the price of the condo unit, and then it’s the government taxes that usually come in next. For example, if you’re a seller, the capital gains, and if you’re a buyer, transfer fees and registration fees,” Santos told ANC’s “On The Money.”
“They say it’s hidden because when you see the contract of the condominium developer, they don’t immediately put it, but these are government mandated fees and taxes. Recently, they put in ‘other fees,’” she added.
Santos said capital gains tax of 6 percent is usually charged to sellers while a documentary stamp tax of 1.5 percent is charged to the buyer.
There is also a transfer and registration tax of about 1.5 percent.
Buyers should also be ready to pay processing fees, which is paid to the person assigned to assist the buyer, and utilities fees to cover payment for electricity and water connections.
Eleanor Liganor, national secretary for Real Estate Brokers Association of the Philippines, also reminded sellers to explain the association dues to the buyer.
Association dues are spent on electricity in common areas, security services, maintenance of common and open areas and salaries of people in charge of cleaning the common areas.
“With some condos, you have to pay real property tax for the common areas that are subdivided among the condo dwellers,” said Santos.
Buyers will also have to shoulder a broker’s fee, which is usually 3 to 5 percent of the gross selling price.
Other fees also include property manager fees and parking fees.
(Via ABS-CBN News.)