Most buyers in Metro Manila spend months deciding whether they can afford a condo — and they spend almost all of that time thinking about the wrong number. The purchase price matters, but it is not the number that determines whether you can actually afford to buy. The number that matters is the total cash you will need on hand between signing and your first year of ownership, and for most buyers, that figure is significantly higher than they expect.

This article does the math. It works through every cost in sequence — acquisition price, closing costs, move-in expenses, first-year carrying costs, and, for buyers planning to rent the unit out, the cost of the vacancy period before a tenant is found. The figures are illustrative, drawn from typical Metro Manila conditions, and should be verified against the specific property and transaction you are evaluating. What they are not is a rough estimate. They are meant to give you a realistic picture of what buying a condo in Metro Manila actually requires.

The question buyers ask most often is: “I have PHP 3 million — can I afford this unit?” The honest answer is: it depends on what PHP 3 million represents in your financial position, not just whether it covers the purchase price.

Affording a condo means covering four distinct categories of cost, not one. First, there is the acquisition cost — what you pay to actually purchase the property, which includes the price plus buyer-side closing taxes and fees. Second, there are move-in costs — the expenses required to make the unit habitable or rentable before anyone lives in it. Third, there are ongoing carrying costs — what you pay every year simply to own the property. Fourth, and most often ignored, is the cash flow gap during the period between taking possession and generating income, if rental is part of your plan.

Each of these categories draws from the same pool of capital. A buyer who allocates everything to the purchase price and has nothing left for the others is not really in a position to complete the transaction — even if the title eventually transfers cleanly.

The acquisition cost is the total cash required to purchase the property and transfer legal ownership into your name. It has two components: the purchase price itself, and the closing costs that the buyer is responsible for paying.

The Purchase Price

For the purpose of this breakdown, assume a resale condo unit in a mid-market Metro Manila development — a studio or one-bedroom unit with a listed price of PHP 3,000,000. This is a realistic price point for secondary-market units in areas such as Mandaluyong, parts of Quezon City, or outer Makati fringe locations as of mid-2025. Premium CBDs such as BGC and Makati CBD command significantly higher prices for comparable configurations.

If you are financing the purchase, the bank will not lend you 100 percent of the purchase price. Philippine banks typically lend up to 80 percent of the appraised value for residential property. The appraised value is not always the same as the purchase price — banks conduct their own appraisal, and if their figure is lower than what you agreed to pay, the loan amount is based on the lower number. Plan for a minimum 20 percent equity contribution, and possibly more.

On a PHP 3,000,000 purchase, a 20 percent equity contribution is PHP 600,000. That figure does not include any of the closing costs, move-in expenses, or carrying costs that follow.

Buyer-Side Closing Costs

In a standard Philippine property transaction, the taxes and fees are split between buyer and seller — but the split is not always what buyers expect, and some costs are negotiable depending on what the Deed of Sale specifies. The following are the costs that conventionally fall to the buyer.

Documentary Stamp Tax (DST). DST is levied on the Deed of Sale at a rate that should be confirmed with the Bureau of Internal Revenue (BIR), as this figure is subject to change. As a planning estimate based on prevailing rates, DST on a PHP 3,000,000 purchase is approximately PHP 45,000 to PHP 52,500. The tax is computed on the higher of the selling price, the BIR zonal value, or the assessed value of the property — whichever is greatest. If the zonal value is higher than the agreed selling price, the tax base rises accordingly.

Transfer Tax. Transfer Tax is paid to the local government unit (LGU) — the city or municipality where the property is located. Rates vary by LGU, typically ranging from 0.5 to 0.75 percent of the higher of selling price or zonal value. On a PHP 3,000,000 unit, plan for approximately PHP 15,000 to PHP 22,500, depending on location. Confirm the applicable rate with the City Treasurer’s Office of the relevant LGU.

Registration Fee. The Registration Fee is paid to the Registry of Deeds to record the transfer of title. It follows a schedule set by the Land Registration Authority (LRA) and is computed on the value of the transaction. On a PHP 3,000,000 property, this typically falls between PHP 12,000 and PHP 18,000.

Notarial Fee. The Deed of Absolute Sale must be notarized by a licensed notary public. Notarial fees are not nationally standardized and vary by practitioner, but a common range for a property transaction of this size is PHP 5,000 to PHP 15,000. Some notaries charge a percentage of the transaction value.

Miscellaneous Documentary Fees. Additional fees — for certified true copies of the title from the Registry of Deeds, tax clearance certificates, and other supporting documents — typically total PHP 3,000 to PHP 8,000 across the full process. These are small individually but add up.

Capital Gains Tax — a note on who pays it. Capital Gains Tax (CGT) is technically the seller’s obligation — it is a tax on the gain from the sale. However, in many Metro Manila resale transactions, particularly those between private individuals, the payment of CGT is negotiated and some sellers pass it to the buyer as a condition of the sale. CGT is computed at six percent of the higher of the selling price or BIR zonal value. On PHP 3,000,000, that is PHP 180,000. Before signing anything, confirm in writing who is responsible for CGT and whether the agreed purchase price is gross or net of this obligation. If you are absorbing CGT on top of the purchase price, your effective acquisition cost rises substantially.

Assuming the buyer pays the conventional buyer-side costs but not CGT, closing costs on a PHP 3,000,000 unit fall in the range of PHP 80,000 to PHP 115,000 — call it approximately 3 to 4 percent of the purchase price as a planning figure.

Acquisition Cost Summary

This is what you need in cash — before you touch the unit — on a PHP 3,000,000 financed purchase. A cash buyer paying the full price needs the full PHP 3,000,000 plus closing costs.

Once the title is in your name, the unit is yours — but it is rarely ready to live in or rent out without additional spending. Move-in costs are the bridge between legal ownership and functional use of the property.

For Owner-Occupiers

A bare unit in a Metro Manila condo — which is what most resale and many pre-selling units are handed over as — typically requires basic fixtures before anyone can occupy it. At minimum, this includes: window treatments (blinds or curtains), light fixtures where none are installed, a water heater if absent, basic kitchen fittings, and cleaning before move-in. A modest but realistic move-in spend for a bare studio or one-bedroom in Metro Manila runs from PHP 30,000 to PHP 80,000 for an owner-occupier who furnishes gradually.

Buyers who want the unit fully furnished before moving in — which is common among first-time buyers purchasing what is also their first fully independent home — typically spend PHP 150,000 to PHP 300,000 on furniture, appliances, and finishing for a unit in the PHP 3,000,000 price range. That figure rises sharply for larger units or buyers with specific finishing preferences.

For Investors Planning to Rent the Unit Out

If you are buying to rent, the move-in cost calculation changes. Metro Manila renters in the PHP 15,000 to PHP 25,000 monthly rent range — which is the typical achievable rent for a PHP 3,000,000 studio or one-bedroom in mid-market locations — expect a furnished unit with functioning appliances. A bare or semi-furnished unit at this price point will take longer to rent and may achieve a lower rent rate than a comparable unit that is move-in ready.

A realistic rental-ready fit-out for a studio unit targeting this market segment runs from PHP 100,000 to PHP 200,000, covering bed and bedding, dining furniture, sofa, basic appliances (refrigerator, washing machine, microwave, air conditioning unit if not provided), and kitchen essentials. This is not a luxury fit-out — it is the minimum a competitive listing in Metro Manila requires to attract tenants at the asking rent.

The fit-out cost is a real investment cost, not an optional extra. A unit that takes three additional months to rent because it is not furnished has, in effect, cost the owner the equivalent of three months of lost rent in addition to the fit-out cost being deferred. Spending on fit-out early usually produces a faster first tenancy, which reduces the total cost of the vacancy gap covered in Category Four.

Carrying costs are what ownership costs you annually, independent of whether you are living in the unit, renting it out, or leaving it empty. These are often underestimated because buyers focus on what it costs to get into the property, not what it costs to hold it.

Association Dues (Monthly Maintenance Fee)

Every condominium unit owner pays a monthly association due to the condominium corporation. This covers building maintenance, common area utilities, security, and amenity upkeep. In Metro Manila, association dues for mid-market developments typically range from PHP 60 to PHP 120 per square metre per month. A 25-square-metre studio at PHP 80 per sqm costs PHP 2,000 per month in dues — PHP 24,000 per year. A 40-square-metre one-bedroom at the same rate costs PHP 3,200 per month — PHP 38,400 per year.

Association dues increase over time. Buildings that were affordable to hold five years ago frequently have dues that have risen 20 to 40 percent over that period. Check the current dues rate, the historical increase pattern, and whether any special assessments are pending before buying. A special assessment — a one-time levy on all unit owners to fund major building repairs — can add tens of thousands of pesos to your holding cost in any given year.

Real Property Tax (RPT)

Real Property Tax (RPT) is the annual tax levied by the local government on the assessed value of your property. The assessed value is not the market value — it is a figure set by the local assessor’s office, typically well below what the unit would sell for. The tax rate varies by LGU and by property classification, but for residential condo units in Metro Manila, a working planning figure is between PHP 8,000 and PHP 20,000 per year on a unit valued at PHP 3,000,000 in the market, depending on the assessed value and the applicable LGU rate. Confirm the RPT payable on any specific unit with the City Assessor’s Office before buying.

RPT can be paid annually or quarterly. Prompt payment matters: unpaid RPT accumulates penalties and — in extreme cases of prolonged non-payment — can result in the property being sold at public auction for tax delinquency.

Building Insurance

The condominium corporation typically maintains a master insurance policy on the building structure. This does not cover the contents of your unit, your personal belongings, or fixtures and improvements you have installed. A separate unit owner’s insurance policy — covering contents and interior improvements — runs approximately PHP 3,000 to PHP 8,000 per year for a standard mid-market unit, depending on coverage level and insurer. If you are renting the unit out, insuring the contents is particularly important.

Mortgage Payments (If Applicable)

If you financed the purchase, your monthly mortgage obligation is a carrying cost that runs regardless of whether the unit generates income. On a PHP 2,400,000 loan (80 percent of PHP 3,000,000) at a fixed interest rate — Philippine bank rates for residential property loans as of mid-2025 are in the range of 6 to 8 percent per annum, subject to change — a 20-year term produces a monthly payment of approximately PHP 18,000 to PHP 20,000. That is PHP 216,000 to PHP 240,000 per year in mortgage obligations.

Philippine bank mortgage rates are typically fixed for an initial period of one to three years, then repriced. If the rate rises at repricing, your monthly payment rises with it. Plan for this possibility when assessing long-term affordability.

First-Year Carrying Cost Summary

An owner-occupier absorbs this cost directly. An investor needs rental income to cover it — and the math only works if the rental income exceeds carrying costs with enough margin to justify the capital tied up in the equity contribution and fit-out.

This is the cost that the most experienced investors plan for and that first-time landlords almost never do.

A newly purchased, newly fitted-out condo unit in Metro Manila does not find a tenant on day one. Listing, showing, screening applicants, and completing the lease paperwork takes time — and during that time, carrying costs accrue with no income to offset them. The typical vacancy period between a unit becoming available and a tenant moving in runs from four to twelve weeks in Metro Manila, depending on location, asking rent, unit condition, and how aggressively the owner markets the property.

At a monthly rental income of PHP 18,000 and a vacancy period of eight weeks, the lost income is approximately PHP 36,000. That figure does not include the carrying costs during those eight weeks, which continue regardless: association dues of PHP 2,400, mortgage payment of approximately PHP 18,500, and a prorated share of RPT and insurance add another PHP 22,000 to PHP 24,000 in costs with no offsetting revenue.

The total cost of an eight-week vacancy on a financed unit in this price range — lost rent plus unrecovered carrying costs — is approximately PHP 58,000 to PHP 60,000. This is a real cost. It is not recoverable once it occurs. It should be budgeted as part of the total cost of the investment, not treated as an anomaly that won’t happen to you.

Repeat this calculation for every subsequent vacancy — because tenancies end, and the vacancy gap recurs at each lease renewal cycle where a tenant does not renew. A realistic underwriting of a buy-to-rent investment assumes one vacancy period per year in the planning model, even if the unit performs better in practice.

Here is what the complete first-year cost of buying a PHP 3,000,000 condo unit in Metro Manila looks like when every category is accounted for. These figures assume a financed purchase, a studio unit of approximately 30 square metres, and a buyer planning to rent the unit out after fitting it out.

The rental income from a tenanted unit partially offsets the carrying costs — approximately PHP 18,000 per month on a well-priced studio in a mid-market Metro Manila location, which is PHP 162,000 over nine months of occupancy (allowing for the three-month vacancy gap). That reduces the net first-year cost to approximately PHP 935,800 to PHP 1,109,800 — still well over PHP 900,000 out of pocket in the first year of ownership on a PHP 3,000,000 property.

This is not a reason not to buy. It is the accurate picture of what buying actually requires, so that the decision to proceed is made with clear eyes rather than an optimistic underestimate of the capital commitment involved.

Return to the original question: “I have PHP 3 million — can I afford this unit?” The answer depends on what the PHP 3 million is and what it is not.

If PHP 3 million is your total liquid capital, and you are planning a financed purchase of a PHP 3,000,000 unit, the answer is: probably not comfortably. After the down payment and closing costs — roughly PHP 680,000 to PHP 716,000 — you have PHP 2.28 million to PHP 2.32 million remaining. That covers the fit-out. It covers the carrying costs for year one. It leaves a buffer, but not a generous one, and it assumes nothing else in your financial life requires liquidity during this period.

If PHP 3 million is your total capital but you are buying with cash rather than a mortgage, the calculation changes: you need the full PHP 3 million plus closing costs in cash, which means you need PHP 3.08 million to PHP 3.12 million to complete the acquisition — before fit-out, carrying costs, or vacancy. Cash purchase eliminates the mortgage as a carrying cost but requires far more capital upfront.

If PHP 3 million is investable capital above your emergency fund, your other financial obligations, and the liquid reserves you need for the first year of ownership — and you have access to bank financing for the balance — then a PHP 3,000,000 unit is within reach, provided the numbers above are planned for rather than discovered after signing.

The capacity to buy a specific property is not just a function of whether you can cover the purchase price. It is a function of whether you can cover the purchase price, all costs to transfer, all costs to make the unit functional, and at least 12 months of carrying costs — with enough left over not to be financially exposed if something unexpected happens. That is the actual affordability question.