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How to manage your finances while paying for a condo

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ABS-CBN News

<figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/e4mWHvxUc_I" width="560"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>MANILA - When not paid for in cash, a condominium is a form of &quot;forced&quot; savings since it requires monthly payments.</p><p>Coupled with utility bills and the need to build savings, condominium dues can be a challenge.</p><p>Salve Duplito, resident financial adviser of ANC&#x27;s On the Money, shared these tips on how condominiums investors can better manage their finances.</p><div><strong>PAY AS MUCH AS YOU CAN</strong></div><p>The best option is to pay 50 percent in cash and get financing for the remaining half, instead of the 80 to 20 ratio, Duplito said.</p><p>“Your interest payments are fair and it is easier to manage your monthly payments,&quot; she said.</p><div><strong>MIND YOUR OTHER DEBT</strong></div><p>Monthly consumer debt payments, including credit card dues, should not go beyond 30 percent of the individual&#x27;s monthly take home pay, Duplito said.</p><p>Anything greater than the 30 percent threshold heightens the risk or default or not being able to pay on time, she said. Keep in mind that banks charge around 6 percent annual interest on condominiums.</p><p>&quot;If the total goes beyond it, you may be at risk of default and most of your savings will go down the drain,&quot; she said.</p><div><strong>DIVERSIFY YOUR PORTFOLIO</strong></div><p>Real estate should not be an individual&#x27;s sole investment, Duplito said.</p><p>&quot;You need to put your money in other investment instruments that are more liquid meaning they can be sold more easily than a property and they behave differently when a crisis strikes,&quot; she said.</p>

<p>When not paid for in cash, a condominium is a form of "forced" savings since it requires monthly payments.</p>

When not paid for in cash, a condominium is a form of "forced" savings since it requires monthly payments.