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Condo vs Rent
Should you buy a Philippine condo or keep renting and invest the difference? Compares both paths over your holding period, accounting for mortgage interest, RPT, capital gains tax, appreciation, and opportunity cost of capital.
Buy
Rent
Common assumptions
Renting comes out ahead by
₱2,223,432
Buying doesn't catch up within the holding period.
Buy net position
-₱1,344,419
Rent net position
₱879,013
| Buy breakdown | |
|---|---|
| Initial outlay (DP + fees) | −₱1,040,000 |
| Mortgage payments (₱24,810/mo) | −₱2,977,148 |
| Association dues | −₱300,000 |
| RPT | −₱144,073 |
| Insurance | −₱72,037 |
| Maintenance | −₱240,122 |
| Sale price at year N | +₱5,920,977 |
| − Capital gains tax | −₱355,259 |
| − Remaining loan | −₱2,136,757 |
| Net position | -₱1,344,419 |
| Rent breakdown | |
|---|---|
| Advance + deposit | −₱54,000 |
| Total rent paid | −₱2,716,825 |
| Invested capital ending (7.00%) | +₱3,649,838 |
| Net position | ₱879,013 |
Reference as of 2026-05-22
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How it works
The buy path tracks every cash outflow over your holding period: down payment + misc fees up front, monthly principal and interest, association dues, RPT, insurance, and maintenance. At the end of the holding period, we appreciate the unit at your chosen rate, subtract 6% capital gains tax (NIRC Sec. 24[D][1]) and the remaining loan balance, and call what's left the "net sale proceeds."
The rent path starts with the deposit, then invests the equivalent of the buyer's down payment and misc fees in a portfolio earning your chosen investment return rate. Each month, if the buyer is paying more than the renter, that difference also gets invested — capturing the opportunity cost of the capital the buyer is locking up.
The headline number is the difference between the two net positions. The break-even year tells you when (if ever) the buyer's wealth catches up to the renter's within your holding period. Rates last reviewed 2026-05-22.
§ 03
Frequently asked questions
What goes into the 'misc fees' on the buy side?
Documentary stamp tax (1.5%), transfer tax (0.5–0.75% LGU-dependent), registration with the Registry of Deeds, notarial fees, and BIR processing. For a brand-new condo from a developer, much of this is folded into the quoted price; for a resale unit, you typically pay 5–7% of the purchase price on top. The 6% default is a reasonable middle estimate.
Why is the RPT (real property tax) so small?
RPT is 1–2% of the assessed value annually — but assessed value in PH is usually only 20–40% of market value. So on a ₱4M unit, RPT lands closer to ₱12,000–₱20,000 per year, which is the 0.3% default. Some LGUs reassess infrequently, so the effective rate stays low even as market value climbs.
How does appreciation vs investment return swing the verdict?
Buying wins when the unit's appreciation outpaces what the renter could earn on the down payment and monthly savings. PH urban condos have grown 3–6% per year over a 10-year window; a balanced PH equity/bond portfolio has averaged 7–9%. With the defaults (4% appreciation, 7% investment return), renting tends to win on pure financials over 10 years — but if you push appreciation to 6% or rent grows 7%+ per year, the math flips.
What does the 'break-even year' mean?
It's the first year inside your holding period where the buyer's net wealth catches up to the renter's. If it's never reached within the holding years you've set, the calculator shows 'not within holding period' — meaning over that horizon, renting + investing the difference stays ahead.
When does renting actually win?
When monthly rent is below ~0.4% of the equivalent purchase price (e.g., ₱18,000 rent for a ₱4–5M unit), when you don't plan to stay 10+ years, when condo dues are heavy relative to the unit value, or when you're confident you'll consistently invest the down payment difference at 7%+ returns. Renting also wins decisively if you'd be paying capital gains tax on a forced sale before appreciation has had time to compound.
Does this save or transmit my data?
No. The calculator runs entirely in your browser. Purchase price, rent, mortgage details — nothing is collected, stored, or sent anywhere.
§ refs
Sources & references
From official issuer, regulator, and data-provider sites. Verify any figure against the primary source before acting on it.