Buying and Renting: What’s the Difference?
You’re finally at the time in your life where you can afford a home. Whether it’s for your family or just for yourself, you’re probably struggling to answer the age-old question of “Should I own or rent?”
For one, renting offers flexible and predictable expenses. However, buying gives you full control of your property. One isn’t objectively better than the other. It mostly depends on your financial situation and your lifestyle. Know the strengths of renting and owning to learn which one is suitable for you.
Why You Should Buy a Home
For Filipinos, buying a home provides a sense of security and achievement. Here’s why.
- It’s Truly Your Own – Once you sign the contract, get hold of the keys, and move in, you’re in full control of your property. You don’t need permission from a landlord to decorate or paint the walls according to your taste. You also don’t have to worry if remodeling work is worth it because you’ll likely live in your home for a long time. Not only do you get the home you want, but you also get the chance to make it truly your own.
- It Appreciates – Property values in and out of Manila are seeing a steady increase. Owning a home as early as possible may mean that you’ll get back what you spent and more when you sell it a decade or so from now. This is because the land will likely become scarcer in the future as developers continue to fill them with properties. Some people see homeownership as an investment. If you’re in it for the returns you’ll get, consider these tips.
- The Location – If you want to make the most money out of your investment, be prepared to shell out a lot on a prime location. If you want a home somewhere in Manila, get one from business districts in Makati or Ortigas. And if you’re looking outside Manila, towns like Bacoor or Tanza, Cavite have low-cost homes that may appreciate significantly. This is because they’re easily accessible from Manila through the South Luzon Expressway (SLEX) and Cavite Expressway (CAVITEX).
- Be Early – If you don’t want to be burdened with high upfront costs, look for properties that are in the pre-selling stage. This is when developers are still trying to get more funds to start the construction of their projects. They offer a lower price to accelerate their funding.
- The Wait – You’ll have to hold onto your property for decades before its value goes up significantly. Enjoy living in it ‘til then!
- It’s Always There – When you buy a home, you don’t have to deal with sudden evictions when your landlord suddenly decides to sell the property. Your family will always have a roof over your heads.
- It’s More Private – Some rental properties may be made with thin walls to maximize costs. If your neighbors are playing loud music or have a dog, they may end up waking you in the middle of the night or keeping you from being immersed in what you’re watching on TV. There’s a good chance they’re hearing your conversations, too. Having your own home with concrete or thick wooden walls ensures you minimize the noises from outside and the ones you make inside.
- It Can Be a Source of Income – If you ever decide to move or have an extra room in your house, you can always rent your property out. This way, you’ll have passive income to add to your savings or sustain your retirement.
Why You Should Rent
Renting is a great choice when you’re still starting out in your job or your family is still small. Here are reasons you should try it out.
- Easy Relocation – If you see yourself moving to another town or job in the next few years, it’s best to just rent. You can easily relocate once your lease ends, as opposed to moving from your own home, which you may need to sell or rent out to buy a new one.
- No Maintenance Worries – Owning your home means you get to have full control over how it looks, but you also have the full burden of maintaining it. With a rental, you don’t have to pay for or do repairs yourself. It’s the landlord’s responsibility. As such, you have more freedom to go out or even travel without worrying about your lawn or leaky pipes.
- It’s Easier to Budget – Your rent price is constant throughout your lease, unlike mortgages that may increase or decrease according to the housing market. Because you’re protected from sudden price hikes during your contract, rentals are easier to budget for.
Townhouses: A Happy Medium
If you want the security of a home for the price of a rental, get a townhouse. They often have second floors and larger spaces than condos or apartments. But they’re cheaper than full-fledged homes. A 50 square meter (sq m) townhouse with three bedrooms in Cavite can cost as low as 29,808 per sqm. This is compared to the condominiums with three bedrooms in central business districts like Makati, which cost about 230,000 per sqm.
Independent living is full of tough choices. Renting or buying a home is one of them. If you’re single and you don’t see yourself having a family any time soon, renting will be a great fit for you. It’s low maintenance and easier on the pocket. But if you want to settle down soon, or already planning for retirement, invest in your own home. It provides the privacy your family needs and you won’t have to deal with the fear of eviction.
Whichever one you choose, be proud, knowing you’re in charge of your own place.
Find a Great Home for the Best Price
If you’re looking to own an affordable home, head to Micara Estates–Tanza. We offer townhouses with up to three bedrooms and 50 square meters of space. You’ll enjoy our great amenities like 24/7 security, a multipurpose basketball court, shuttle service, and more. If you’re working in the metro, commuting to and from Micara is a breeze, as we’re located near the Cavite Expressway.
Contact us today for a free assessment with one of our property experts.