You’ve now spent time searching for the perfect condominium community and have every detail checked off on your list, fitting all of it into your monthly mortgage budget. But – have you taken association dues into consideration?
Association dues are often overlooked but a detail attached to most condominium purchases that deserve attention. Whilst shopping for the perfect condominium to make your new home don’t leave association dues out of the equation and understand not only the related costs but how they benefit you.
Association dues become your responsibility once you become an owner (or even a tenant) of a unit in a condominium. Again, once the unit has been turned over to you, you’ve signed the Deed of Absolute Sale or the title has been transferred to your name, the fees become your responsibility. The association dues are fees which contribute to the overall operational expenses of the building.
The costs of associated dues cover all of the specifics that you and your family won’t have to worry about whilst living in a condominium community, but will be able to enjoy. The upkeep of the sparkling pool, playground and fitness centre will all be taken care of by maintenance employed by the condominium and the dues paid will ensure repairs are made, all staff (security personnel, management, cleaning services, maintenance etc.) are paid and that the building’s taxes and licenses are covered along with utility expenses.
Your monthly bill for association dues will vary depending on the size of the unit you live in as the price is computed by the total area size (including balcony space) on top of the quality of facilities offered. For example, a condominium may charge PHP 90 per sq. m not including VAT and the size of your unit is 65 sq. m, this means your monthly due will be PHP 5,850 before taxes.
It’s easy to make your monthly association due payment, as the property managers employed in the building can collect your dues each month in their office. It’s important to note that there are no ways of opting out of the homeowners association, so skipping payments is not an option. If you fail to pay your association dues you may be subjected to interest charges and if you continue to avoid payments, some developers may cut-off all of your rights to utilities and facilities offered.
To really stay on top of your association dues, ask your condominium’s management if the developer allows lump-sum payments, as making a one-time annual payment versus monthly payments might snag you a few thousand peso discount!
