MANILA, Philippines — Online property platform Lamudi has released its list of the required salary buyers need in order to afford a condominium in Metro Manila.
In its latest report, Lamudi Philippines said couples looking to buy a 60-square meter, mid-end two-bedroom unit in Mandaluyong, San Juan, Pasig, Parañaque, Muntinlupa or Las Piñas should have a combined income of P125,000 per month on the average.
Likewise, those who are searching for the same size and type condo in Makati or Taguig should have a combined monthly income of P178,000 or more, Lamudi said.
When looked at individually, however, Lamudi said the cities of Metro Manila show great diversity.
For example, it said a condo buyer who plans to buy in Makati should have a monthly gross salary of P196,820 – the highest anywhere in Metro Manila.
In contrast, the report showed those who plan to purchase a similar unit in Las Piñas – Metro Manila’s cheapest city to buy a condo – should be earning approximately P70,580 per month.
“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,” Lamudi said.
“Furthermore, some people have more savings than others, allowing them to put a larger downpayment, 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,” it added.
The global online real estate marketplace determined the amount of gross monthly income of a prospective condo buyer in order to afford mortgage payment of condos by using 6.5 percent annual interest rate fixed for five years and a loan tenor of 15 years.
Lamudi’s calculation also assumed that the buyer spends not more than 30 percent of their gross monthly income on mortgage repayments, including principal and interest, and makes a 20 percent downpayment on the property following most banks’ 80/20 loan-to-value ratio.
Lamudi is a global property portal focusing exclusively on emerging markets, generating about one million visitors per month. Its fast-growing platform is currently available in 28 countries in Asia, the Middle East, Africa and Latin America, with more than 600,000 real estate listings across its global network.