When it comes to finding a place to live in, most of us weigh the benefits of owning a home vs renting. We constantly ask whether it’s the right time to buy a house or if we should settle to rent a place for now.
Deciding between these two options is a major financial commitment that can affect your quality of life, your long-term financial stability, and your overall sense of security.
But not to worry! This article will be an in-depth home-buying guide that will discuss purchasing and renting a house to help you make an informed decision on which investment to make in the near future.
Why Buying a House and Lot vs Renting Might Be the Ideal Choice for You
For most people, the idea of owning a house is the dream. And while renting a home may seem like a good option for you, buying your own house comes with a lot of benefits that can make it a worthwhile purchase in the long run.
So, Why Should You Buy a House?
Buying a house is an asset for most of us. Even though it’s considered a big-ticket purchase, it’s a financial investment that is likely to appreciate over time.
Here are some of the benefits you get from buying a house:
Equity: Buying your own home will allow you to build equity over time. And if you’re unsure what that means, equity is the difference between the value of the property and the amount you owe on the mortgage. The idea is that as you pay down your mortgage, your equity increases. This could be a valuable asset that you can use for future investments or emergencies.
Stability: When you own a house, you have more stability and control over your living situation. You wouldn’t have to worry about unreasonable landlords raising the rent or asking you to suddenly leave the property. Also, having your own home will give you the freedom to make changes to your property without having to worry about breaking your deposit or needing anyone else’s permission.
Tax Benefits: Owning your own home comes with tax benefits that can help you save money. You can check with your accountant if you are able to deduct the mortgage interest and property taxes from your income taxes, which can lower your overall payables.
Investment: As mentioned earlier, buying your own house is a good long-term investment as its value increases over time. If you decide to move into another property in the future, you can sell your house for a profit. You might even be able to sell it for twice its original value if the location of your house is surrounded by new commercial developments like malls, parks, and other amenities.
Nowadays, a lot of real estate developers are building properties around the greater Metro Manila area. You can check out the properties in General Trias, Cavite for house and lots for sale, or in Bulacan’s surrounding areas.
However, if you want to look at locations near central business districts, you can also check out properties in popular areas like Makati City to be nearer the general vicinity that’s closer to work.
Now that we’ve discussed the benefits of buying a home, let’s move on and discuss renting.
What Are the Benefits of Renting a Home?
Renting a property to live in is one of the most common choices that people choose over buying a property. This is because of the various flexibilities that offer renters more wiggle room in terms of budget.
Here are some of the advantages of renting that tenants typically consider:
Flexibility: When you rent a house, you get more flexibility since you can up and leave whenever you need to. All you have to do is to give the landlord your notice and proceed to find a new place to live.
Lower Costs: Renting a house is generally less expensive than buying your own since the monthly fee is typically less than what you would pay for a mortgage. You wouldn’t have to worry about down payments, closing costs, or maintenance fees since your landlord usually takes care of them.
Some rentals even waive other fees like home association costs or some costs for repairs. All you need to focus on is the monthly rent and utilities and you are set.
Minimal Responsibility: Similar to lessening the costs, because the rental property is not yours, you won’t have to worry about coordinating repairs and maintenance. This does not only save you time and money, but it can also save you the hassle.
Lower Risk: Renting eliminates the risk of losing value on your property. This is especially applicable to those who earn from buying and selling real estate. And in your case, you can simply move to another rental property if the housing market crashes.
As you can see, choosing to go with rental properties has its own benefits. The downside to rentals is that you won’t have the liberty to control your space as you please.
Usually, landlords have certain restrictions on what you can change within the house since it’s technically their property. They could also impose certain rules that you might not agree with, therefore creating tension and discomfort with your living situation.
Additionally, there are no investment opportunities with rentals while their fees continue to increase each year. This means that renting a house might just be burning a hole in your pocket that you can’t get back unlike with buying properties.
Choosing Between Buying a House and Lot vs Renting
Deciding between purchasing your own house or renting depends on your individual circumstances and priorities. If you have the capacity to buy and you value stability, control, and the other long-term benefits of owning your own house, then you should invest in homeownership. With this option, you will be setting down roots for yourself and your family in the dream house you worked hard to get.
Of course, renting is still a good option especially if you have an on-the-go lifestyle. However, it does limit your options in terms of what you can do with your space and the value you will be getting over time.
It’s also important to consider your financial situation, lifestyle, and future plans when making decisions like this. If you opt to buy a house, a good understanding of the costs involved and projections on possible investment returns will help you budget properly.
And if you choose to rent for the time being, it’s good to create timelines as well to plan out your savings for future house purchases.
Buying with Minami Residences
Knowing the advantages of buying a house and lot vs renting is necessary to help you make your final real estate decision.
And when you do decide to get a house, choose Minami Residences for your real estate needs!
With the designs of our Minami houses and lots in General Trias, you can avail of our quadruplex homes that have provisions for future upgrades provided that you will follow our home improvement guidelines. The location of our community is near major highways like the Cavite-Laguna Expressway, the Cavite Expressway, and Arnaldo Highway––minutes away from central business districts like Makati City.
If you’re curious to see our designs, you can take a virtual reality tour of our houses on our website or you can get in touch with us!