Array
Real Estate

Should You Rent Or Buy A Home?

There are a lot of important factors to consider before deciding whether to rent a home or to buy one

Shares
Original Article: Maris A. Mortel Photography: Jilson Tiu (Main Photo)

Getting your own place to live in is one of the biggest and most important decisions you’ll ever make, which means that it is something to be given a lot of thought.

Before anything else, it is essential for you to have an idea of what your needs are, which will allow you to also know what kind of housing is best suited for you. This includes whether it will be more advantageous for you to purchase a property or to rent one.


ADVERTISEMENT - CONTINUE READING BELOW

When to buy a home

If you see yourself residing at an address for the long-term, then you might consider becoming its homeowner. Besides having the pride of owning your own place, you also have complete control over decorating or renovating according to your tastes and lifestyle. Monetary benefits are also present when you choose to buy because with every mortgage payment, you are getting closer to owning property. This is the big difference from renting, wherein your monthly payment creates value not for you, but for the owner.

A possible hurdle is that investing in your own property means there is a risk that its value can decrease or remain static depending on the condition of the real estate industry. Also, if you own your home, you cannot simply pack up and move whenever you want to, you would have to go through the process of finding a buyer and selling the house.

ADVERTISEMENT - CONTINUE READING BELOW

READ: 5 Signs You're Ready To Buy A Home


When to rent

On the other hand, generally, it is more viable to rent if you need the place for the short-term—a mere few months to one to two years. If you are single or starting out on your own, for instance, renting can be advantageous because the responsibility for major repairs, maintenance, improvements, and other aspects of home ownership that can be costly and time-consuming is shouldered by the owner.

ADVERTISEMENT - CONTINUE READING BELOW

But if the location of your rented home is in a developed or developing area, there is a good opportunity for your house to increase in value or appreciate as time goes by, increasing your owner’s equity. Owned properties can be used as collateral for bank loans as well. But before taking the plunge, ask yourself if you can afford the downpayment and installments to purchase a house and if you are willing and capable to shoulder the responsibilities and costs of owning a house.

READ: 6 Frequently Asked Questions About Renting


ADVERTISEMENT - CONTINUE READING BELOW

Making a decision

To rent or to buy—both choices certainly have their advantages and disadvantages, which can factor into your decision-making. With many housing developments in the metropolis and many others rising up within the city and its outskirts, there is a wide range of options to choose from that would fit your family’s needs, lifestyle, and financial capability. Be sure to make your decision wisely, and in consideration of all the different factors needed to be thought about.

This article originally appeared as “Rent vs. Buy” in the June 2006 issue of Real Living Magazine.

More on Realliving.com.ph

Shares
Recommended Videos

Latest Stories

Maggie Wilson's Casa Consunji Will Make Your Tropical Dream Home Possible

The store boasts of modern signature pieces made from natural elements.

5 Steps to Starting Your Own Organic Container Garden of Herbs and Vegetables

You don't need a green thumb to grow your own veggies and herbs at home.

7 Ideas to Make Your Small Bathroom Look Big

It's important to be smart about how you decorate and organize.

5 Reasons Child-Sized Furniture Is a Worthy Investment for Your Home

For one, smaller furniture is much safer for young kids to use.

7 Stores to Shop for Kids and Child-Sized Furniture (Beds, Chairs and Tables, and More)

Let your child's personality shine by choosing unique pieces for her room!

The Favorite Furniture Stores of Manila's Most Discerning

If luxe and exceedingly stylish furniture is what you're after, check this list out.

Porcelain vs Ceramic for Bathroom Tiles: Here's How and What to Choose

Should you go for porcelain tiles or ceramic tiles? A licensed interior designer gives her advice

10 Cute Pots for Your Plant Babies

Give your little green friends the home they deserve!

Andi Manzano Offers a Peek at Her Line of Child-Sized Furniture (Available in October!)

The actress collaborated with a home store that specializes in furniture for babies and kids.

Where to Find Wall Stickers for Your Child's Bedroom (No Need for a New Paint Job!)

You can get wall stickers in lots of unique colors and designs.

'Walang Trabahong Pang-Forever': 5 Lessons on Investing from Dimples Romana

Dimples and her husband have been investing in real estate properties since 16 years ago when they got married.

Take Note: Here's How Often You Should Wash Your Bed Sheets

There's a recommended general rule of thumb you should remember.
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!