Image via WikipediaRenting vs. buying a property has drawn many an argument. Parang liberal vs. democrat. :)
Renting property
When you rent, that's the only out-of-pocket expense you have towards housing. Ang mga repairs ay responsibilidad ng landlord.
Ang downside ng renting is that your payments may be increased yearly, depende sa agreement nyo ng landlord.
Another downside, for most people, is that the property you're renting will never be yours unless it's a rent-to-own set up.
Many would argue that renting is a waste of money. I don't necessarily agree with this logic.
Buying property
When you buy a property, unless you paid for it in cash, you are subject to interest rates. By the end of your loan term, you will have paid a significant amount in interest charges.
Apart from mortgage/amortization, meron ka pang property tax taon-taon.
Sa iyo pa ang gastos ng repairs.
You are most likely required to have life insurance if you have a mortgage. You will also need to have home (and contents) insurance for peace of mind.
Image via WikipediaAng upside ng owning a property is that it is/will be yours after a certain time. You can do anything you want to it in agreement with the laws and legislations in your locality.
My take on it
Even if I'm now a property owner, I still think about life as a renter. When we weren't happy in the place we rented, we could easily look for a better place to live. I didn't worry about problems that required fixing. Kelangan ko lang i-report sa landlord namin.
I wish we had a lot of cash or we had won the lotto para we could've bought the house in full. It's painful to see the total interest charges we pay every year. Paliit naman ng paliit, pero interest pa rin.
Should you decide to buy, never take on a loan that's more than 20 years. If you can cut it down further mas maganda. In fact, any wiggle room you have could be paid towards your home loan if you want. That will further shorten the life of your loan.
Should you decide to keep renting, set aside a certain percentage of your net pay towards your first home deposit. The higher deposit you have, the more equity you will gain.
May emotional attachment din kasi ang magkaron ng bahay. It's pathological in my opinion. Iba pag may-ari ka na. Iyong iyo na ang tirahan mo.
It all boils down to your values and current situation. If you are drowning in debt at the moment, it's better to put it off. If you're the kind who likes flexibility, by all means rent. After all, you can't take it with you to your grave. You can't ensure your kids will want to live in the same address either.
Maski ang reasoning mo is that you're paying towards owning a house, don't forget that interest charges are from your pocket too. That's wasting money pa rin in my opinion. We are actually considering selling our property and rent for a while. That will be an ongoing topic here for sure!
What about you, what's your take on this topic?
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