Buy vs Rent Calculator (Philippines)
Buying real estate in the Philippines beats renting when you stay 7+ years AND annual appreciation outpaces interest costs AND you have ~20% down. Below 5 years, transaction costs (6% CGT + 1.5% DST + 0.5-0.75% transfer tax = ~8% total) usually favor renting. Metro Manila condos averaged 5-7% annual appreciation in 2015-2026; BGC/McKinley/Rockwell averaged 7-10%. This calculator runs both scenarios over your chosen horizon and shows the savings either way.
Source: Bank-rate benchmarks (BSP); Housal active-listings appreciation data (2015-2026).
Buying assumptions
Renting + horizon
Simplified model: assumes 5% annual rent inflation, fixed-rate mortgage, no transaction costs (CGT, transfer tax, broker fees) on either side. For exact closing-cost comparison, see Capital Gains Tax + Transfer Tax calculators.
Frequently asked questions
When is buying better than renting?
Buying typically wins when (a) you stay 7+ years, (b) annual appreciation exceeds rent inflation + interest spread, and (c) you can afford 20% down. Below 5 years, transaction costs (6% CGT + 1.5% DST + 0.5-0.75% transfer tax) usually make renting cheaper.
What appreciation rate is realistic?
Metro Manila condos averaged 5-7% annual appreciation 2015-2026. BGC, McKinley, and Rockwell averaged 7-10%. Provincial markets averaged 3-5%. Past performance does not guarantee future returns.
Should I include closing costs?
For accuracy, add buyer-side closing costs (~2.5% of property value: transfer tax + DST + reg fee) and seller-side CGT (6%). This calculator uses a simplified model — check our Transfer Tax + Capital Gains Tax calculators for exact figures.
What about Pag-IBIG financing?
Pag-IBIG offers ~5.75% rates (vs ~7.5% bank rates) capped at ₱6M. For most BGC/Makati condos this means combining Pag-IBIG with bank financing. Lower interest dramatically improves the buy-vs-rent verdict.
Should I buy in a high-rise condo or a house and lot?
Houses appreciate faster (land has fixed supply) but yield less in rent. Condos depreciate slightly with age but yield 5-7% in rent. Choose based on whether you want appreciation or income — not both.
Decided to buy? Find your property
Browse verified listings on Housal — every property has a contactable agent.
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