SHOULD YOU RENT OR BUY A HOUSE IN THE PHILIPPINES?

According to a survey initiated by Citibank in 2008, only 42 percent of Filipinos owned their homes, the lowest in the Asia-Pacific region, either outright or paying mortgages. This number is a far cry from the 81 percent of Chinese citizens who own their homes, so should you rent or buy a house in the Philippines? People want to live there because there is a notion that people living in Metro Manila and Metro Cebu earn a lot of money. After all, most families in the Philippines resort to renting in urban areas.

The majority of people would like to have homes of their own. In owning the house you are living in, there is a sense of comfort and pride. The continuing point is that the place you keep paying rent will never be yours, while the house will finally belong to you if you take out a mortgage and spend a little more than your rental price. Most individuals claim it is an investment to own a home.

RENT OR BUY A HOUSE IN PHILIPPINES?

Buying is not the best decision for you if you cannot commit to a specific position for at least three to five years. If you plan to sell early, the property appreciation you will possibly see won’t outweigh the costs. Since it will depend on inflation, you won’t guarantee a return on a purchase.

In this argument, however, it does not make renting the winner. It’s just one reason you might know that renting for you personally might be a better choice.

WHY IS RENTING IS BETTER IN PHILIPPINES

1. If you don’t see yourself living in the same position for the next 3 to 5 years, renting is a safer choice. In this timeline, many things can happen, such as moving to another business, getting married, or migrating abroad. Selling your house can take quite a while when you find yourself in some of these circumstances.
2. Other than the costs associated with your homeownership, renting often saves you from the stress of repair and renovation. You can enjoy facilities for free, such as swimming pools and a gym, if you rent a house. This convenient lifestyle proves that when you rent, you don’t throw away money.
3. Renting is a safer choice if, for years to come, you are single, still unsure, and unready to commit to a single spot. Other than money, there are several important factors to consider.
4. In the Philippines, renting is something I highly recommend. For the first few years, at least. The fact is, renting makes economic sense in the Philippines. Compared to the cost of owning a home, rental rates in the Philippines are relatively low.
5. If you build on the expectations you are used to, it will likely be tough to sell. Also, people may not like your house’s design. However, you could never sell the house if you build the home you want and plan to move elsewhere.

BUYING HOUSE IN PHILIPPINES

TIPS TO BUYING A HOUSE IN PHILIPPINES

Do extensive research

You need to be sure that the property itself is worth your money, apart from finding a reputable real estate developer. When researching houses and lots, here are a couple of points to consider:

• Climate: In which sort of neighborhood is the development located? Does the general area fit your interests or needs? If you are buying a house and a lot for your growing family, this is significant.
• Facilities: What is the property that fits in by default? Are there nearby high-quality services and common areas? This especially applies to houses and lots that happen to be located within subdivisions in the Philippines.
• Proximity Services:  How close is the property to the nearest hospital or school?

Figure out your financial plan

When you have defined the house and the sum you want, make sure you can afford the booking fee, down payment, and monthly amortization. Give an honest assessment of yourself. You wouldn’t want your house of dreams and a lot to become a nightmarish pit of wealth.

STEPS TO BUYING A HOUSE IN PHILIPPINE

• Partner with a credible real estate developer
• Appoint a reliable Attorney-in-fact
• Complete the requirements

COMPARING BUYING AND  RENTING A HOUSE IN PHILIPPINES

Before you decide whether to rent or purchase a house, there are many things to consider. How you feel about several things, such as upkeep, taxation, savings, and personal values, will depend on your ultimate decision. Although you don’t have to read about real estate details, it will undoubtedly help you make a sound decision to know what you’re getting into.

 When deciding whether to rent or buy a home, here are few questions to bear in mind:

• All the maintenance costs are yours when you own your house, including fees you need to pay the plumber when the bathroom gets clogged or when it needs to be replaced by a new roof. These costs, if you rent, are all the responsibility of the landlord. Also, the landlord can take responsibility for the yard car’s needs when you rent it. You have to do it or pay to have it done if you own it.
• Owning a house also implies that you are responsible for any taxes on land that might be incurred. This is an expense for a renter that the landlord pays. This might not be a significant concern, however, depending on where the home is located. Explore the area’s tax rules.

BUYING A HOUSE IN THE PHILIPPINES

• While buying a piece of property means that you are responsible for the expense of upkeep and maintenance, and taxation, it also means that you have the chance to benefit from your investment. Making improvements and enhancements will increase the value of your land, as do favorable market conditions, such as the appreciation of healthy capital value or favorable rental yield rates.
• And finally, having a house of your own certainly gives you a lot of personal satisfaction. It can be gratifying to know that you have successfully purchased a home and offer the right place for your family to live. Renting can give you the comfort of getting a roof over your head and that your bills are paid, but there simply isn’t a sense of personal achievement.

COMPARING A HOUSE AND A CONDO

The biggest thing houses and condos have in common is that individuals own them. Nearly everything else about them, however, is different. Houses come in various shapes and sizes (often called single-family homes), from multi-story families to single-story ranch houses. Condos inside a larger building are single rooms to have neighbors above and next to you. The home construction and the property it sits on are owned by owners of single-family homes, while condo owners own the unit they live in and not the larger house or the land on which it is constructed.

For a first-time homebuyer looking to transition from renting to owning or for former homeowners who want to downsize, buying a condo can be perfect.

For someone who travels regularly or wants to be right in the center of a coveted part of town where single-family homes are out of their budget, a condo may also be a smart purchase. For owners who want facilities like an on-site pool or gym but can not afford to build or maintain them, condos are also a good option.

On the other hand, a single-family house comes with a lot more room, so it’s an ideal option for growing families or those who want full control over their home’s structural and aesthetic decisions. A single-family house is a way to go if you value privacy and don’t like to share living rooms with other people. However, you must be prepared to do both the interior and exterior maintenance and repairs, physically and financially.

Philippines Influence hopes you’ve enjoyed this article. 

We would love to hear from you.  Please share your experiences and comments below.  

~Staff

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