Should you buy or rent your next home?

Should you buy your next home or should you rent? | Archpressph

Many people believe that having one’s own home is the ultimate symbol of financial and professional achievement. If nothing else, owning a place of your own ensures that you will always have a refuge to return to, regardless of what the future holds for you in terms of your career and your earnings. Having said that, not everyone subscribes to the same point of view. Also, not everyone has the financial means to make a significant change early on in their professional life. The best option for them would be to rent a place until they figure things out. Should you buy or rent your future home, as this question is posed to everyone else who longs to have a roof over their heads?

There are several considerations to take into account before deciding whether to buy or rent a home. The availability of funds, the state of the market, and the liquidity of the asset. In real estate transactions, location is one of the most important factors to consider. In addition to this, there are a few elements that give one option a distinct advantage over the other in terms of the logic it adheres to. Let’s take a look at each of these aspects.

The Arguments in Favor of Shopping

When considering whether to buy or rent your future home, you can’t go wrong with purchasing your own property as an investment rather than renting. In point of fact, this view is held by two out of every three Filipino families, and they all own the home in which they reside. A major financial commitment that may stretch out over years or even decades is required in order to complete the purchase of a property, which comes as no surprise.

Pros

You will have the opportunity to purchase your very own residence, complete with a title deed in your name.

Your investment may see a large gain in value over the course of several years depending on where you live, particularly if the surrounding area continues to experience growth.

You and your family will have the opportunity to put down some roots. Children benefit from this because it provides them with a steady setting and helps them avoid bouncing about from school to school.

There are benefits that come along with having your own house that are good for both you and your family. If there are no landlords, there will be no arbitrary regulations and no limits on where people can live. It also indicates that there is no need to seek authorization before making enhancements. In addition, it is exciting to at long last have the information necessary to complete the “permanent address” box that is present on many application forms. In addition, you will be provided with a reliable delivery address for any online transactions you make.

Cons

Purchasing a home is not a cheap endeavor. The purchase of a house and lot in the Philippines typically costs between P3 and P5 million for a plot that is between 50 and 70 square meters in size. Then there is the added expense of building, in addition to the hefty cost of legal and documentary fees, as well as the increased cost of insurance premiums.

This year, interest rates have increased, primarily as a result of rising inflation around the world. Recently, the overnight lending rate was increased to 3.25% by the Bangko Sentral ng Pilipinas. Prior to this, it was set at 2.5% in 2021. The value of this could potentially go even higher based on a variety of external conditions.

It is possible for the investment value of your home to decrease due to factors that are, for the most part, outside your control. The value of your property can be affected in either a positive or negative way by factors such as the state of the environment, the level of national security, and the state of the economy in general.

When you own your own house, the duties that come along with it are, of course, entirely yours to handle. This includes taking care of any maintenance issues that may arise. Everything from replacing a dripping faucet to making structural repairs on the roof is going to fall on your shoulders… and your money.

The Arguments in Favor of Leasing

When deciding whether to buy or rent your future house, one’s financial situation can be a significant factor to consider. If you can’t come up with the money for a down payment on a home in the neighborhood that you desire, there’s no point in even entertaining the idea of buying one.

However, renting a property isn’t necessarily a terrible plan to have in your back pocket. When you rent a place, you receive all of the benefits of having your own place without having to deal with the responsibilities and maintenance that come along with ownership. Additionally, when the cost of living and other expenses are taken into consideration, it’s possible that renting will continue to be the more financially sound choice than purchasing a home, which may cost more than you can afford.

The following is a list of further arguments for and against the proposition that one should rent rather than buy.

Pros

You have the option of acquiring a location that caters to your requirements rather than one that is within your price range. It’s possible that renting a house with three bedrooms rather than cramming your family into a studio apartment will allow for a far more pleasant living experience overall.

You are under very little obligation beyond the terms of your contract, and you are free to leave once the term of your lease is up. You may be able to get out of your contract before the maturity date with minimal or no financial repercussions, but this will depend on the specifics of your agreement.

Less paperwork to fill out, and no additional costs. You only need to make the initial deposit and the advance payment before you can move in.

You won’t have to worry about an increase or decrease in the value of your property.

There is no longer a need to pay reoccurring charges such as property taxes or the renewal of an insurance payment.

Your landlord is still liable for any necessary repairs or improvements that may arise.

Renting provides persons who are mobile with additional possibilities, which is especially beneficial for those individuals who have work in the city. Renting is still a realistic choice for workers who wish to live close to their places of employment because the cost of buying a home there is probably out of their price range.

Cons

The choices that are available to tenants in terms of furnishings and interior design are frequently constrained by the landlord.

The monthly rent might go increased at any time. Because of the intense competition for available housing in high-density locations, rental prices may rise to the point where they are unaffordable.

Your landlord has the right to evict you at any moment in order to make room for a family member or to prepare the property for sale.

Your own living options may also be limited by a number of restrictions that can be imposed by your landlord. They have the ability to restrict visiting hours for guests and even exclude pets from the property altogether. When you rent a place, the landlord has the right to lock you out at any time, which can make it more difficult if you miss your monthly rent payment.

Should You Buy or Rent Your Own Home? that is the Question!

When taking everything into consideration, is it better to buy or rent your new home? People who have not yet taken the plunge into starting a family may discover that renting a living space rather than purchasing one is more beneficial to their circumstances. Considering that jobs frequently come and go, and the pursuit of them can even send you to far-flung locations, settling down could prove to be premature.

In the meantime, young couples and families have the option of purchasing their own homes in order to get their family lives off to a healthy start. Having a permanent basis can make it easier to create routines and enable children to develop in an atmosphere that is already familiar to them. A permanent residence might also indicate an increased likelihood of becoming a member of a neighborhood comprised of people who share similar values and perspectives.

Should you buy your next home or should you rent? If you think you can pull it off, then you should. It’s possible that the size of your bank account will be the deciding factor in this significant expenditure. However, you should not forget to check the interior and see what supplies you and your family might require. We are confident that you will be able to create a cozy and comfortable abode in whatsoever location you decide to call home.

Do you require additional information concerning the present state of the real estate market in the Philippines today?

Come visit us at Ohmyhome Philippines for the latest news, trends, available properties, and prices in the country today. You can also get a pulse of the local real estate market by subscribing to our Facebook, Instagram, or YouTube accounts. Alternatively, download the Ohmyhome mobile app for iOS and Android. Ohmyhome is a simple property technology solution to help both buyers and sellers make the best real estate decisions through honest and accurate information. The digital platform, now with 100+ partner developers, over 600k downloads and a 4.8++ rating, aims to provide the best property commerce experience for people from all walks of life in Singapore, Malaysia, and the Philippines.

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