If you’re living in Metro Manila, you’ve probably asked yourself this question:
Should I keep renting… or finally buy a condo?
With property prices still high and interest rates not exactly “cheap,” the decision isn’t as simple as older generations make it sound.
In this article, we’ll break down real numbers so you can see which one makes more financial sense in 2026.
The Scenario
Let’s assume:
• Monthly rent: ₱25,000
• Condo price: ₱5,000,000
• Downpayment: 20%
• Loan term: 20 years
• Interest rate: 7%
These are realistic numbers for a 1-bedroom condo in prime areas of Metro Manila developed by companies like:
- SM Development Corporation
- Ayala Land
- Megaworld Corporation
Option 1: Renting
Annual Rent
₱25,000 × 12 = ₱300,000
10-Year Rent Cost
₱300,000 × 10 = ₱3,000,000
After 10 years:
You spent ₱3 million.
You own nothing.
This is the argument most people use against renting.
But wait.
You avoided:
• ₱1,000,000 downpayment
• Bank interest
• Property taxes
• Condo dues
• Maintenance
• Vacancy risk (if you relocate)
Option 2: Buying
Downpayment (20%)
₱1,000,000
Loan Amount
₱4,000,000
At 7% interest for 20 years, monthly amortization is roughly:
≈ ₱31,000 – ₱33,000 per month
Let’s use ₱32,000 for computation.
Annual Amortization
₱32,000 × 12 = ₱384,000
That’s already ₱84,000 more per year than renting.
Add Hidden Ownership Costs
Condo dues (₱100 per sqm × 35 sqm example)
≈ ₱3,500/month
= ₱42,000/year
Real property tax + misc.
≈ ₱20,000/year estimate
Maintenance fund
≈ ₱15,000/year average
Total Annual Cost of Owning
Amortization: ₱384,000
Condo dues: ₱42,000
Taxes & misc: ₱20,000
Maintenance: ₱15,000
Total ≈ ₱461,000 per year
That’s ₱161,000 more per year compared to renting.
10-Year Comparison
Renting (10 years)
≈ ₱3,000,000
Buying (10 years)
Downpayment: ₱1,000,000
10 years amortization: ₱3,840,000
Other costs (₱77,000 × 10): ₱770,000
Total ≈ ₱5,610,000
That’s a ₱2.6 million difference in 10 years.
But here’s the twist:
After 10 years of paying, you don’t fully own the condo yet.
And a large portion of your amortization went to interest.
What About Appreciation?
Condo appreciation in Metro Manila has slowed down compared to the boom years.
Oversupply issues in some areas are real.
If your ₱5M condo becomes ₱6.5M after 10 years, that’s good.
But if it stays flat at ₱5.5M, your gains may barely offset interest paid.
Real estate is not automatically a guaranteed “good investment.”
When Renting Makes More Sense
Renting is better if:
• You’re early in your career
• You may relocate
• You can invest the ₱1M downpayment elsewhere
• You value flexibility
• You’re not ready for a 20-year commitment
If that ₱1M was invested in MP2, REITs, or a diversified portfolio earning 6–8%, the gap narrows significantly.
When Buying Makes More Sense
Buying is better if:
• You plan to stay long-term (15+ years)
• You want stability
• You’re buying below market value
• You can afford it comfortably (not 50% of your income)
• You value ownership more than liquidity
Buying is not just financial.
It’s emotional.
The Real Question
Instead of asking:
“Is renting throwing money away?”
Ask:
“Can I afford the opportunity cost of buying?”
Because ownership ties up capital.
Liquidity matters in uncertain times.
So… Rent or Buy?
If you are purely optimizing for short to medium-term wealth (5–10 years), renting often wins in Metro Manila under current numbers.
If you’re optimizing for stability and long-term living, buying can make sense — but only if you can truly afford it.
There is no universal answer.
But there is a wrong move:
Buying because of pressure.
Blogger’s Corner
Filipinos were taught that renting is wasting money.
But numbers don’t lie.
Sometimes, renting is the smarter financial decision — especially if you use the difference to invest wisely.
Homeownership is not mandatory for wealth.
Financial freedom is.