Renting vs. Owning A House in the Philippines: Which Is Better?
2021 Aug 28 | by Apple Barretto
Which is better between renting vs owning a house in the Philippines?
- Budget
- Investment Value
- Period of Residence
- Privacy
- Freedom To Renovate The House
Are you planning to reside in a home soon? You might be contemplating between renting vs owning a house in the Philippines. Fortunately, we’ve created a comprehensive guide to help you out.
Depending on your current living situation, each choice will have its distinct advantages and disadvantages. You will ultimately have to decide what best suits your family’s needs and lifestyle preferences. It can be overwhelming to be faced with so many facts. So, consider these guidelines about renting vs owning a house in the Philippines to see which fits you best. Keep reading to learn more!
Budget
Owning a house in the Philippines is not a small expense. Today, the median home listing price in the country is P7,000,000. If you choose to reside in provincial regions, there are choices for an affordable house and lot for sale in Cebu ranging from P2,000,000.
Some people would say renting is better than owning a house in the Philippines because there is a choice to pay monthly. While it’s true that owning a home can be more expensive than renting, its downside is that you will never have the property title under your name. With renting, you will be paying your monthly fee, and at the end of the contract, the property will be returned to the landlord.
Keep in mind that there may be a security deposit fee, advance payment, and moving expenses. Your landlord may also ask you to shoulder the monthly utility fees, such as water and electricity.
On the other hand, owning a house means paying taxes, interests, and association dues. If you get a mortgage, you will need to pay a fixed amount every month as well. Make sure to consider the costs of renting vs buying a house. If you are looking for a permanent place for your family and have enough savings, you may be better off owning a home. But if you are looking for a temporary place due to a particular life situation like a job relocation or school, renting might be best for your budget.
Investment Value
Some of the primary reasons people own a house are either to have a place to live in or build long-term wealth. Aside from the choice of renting out your place for passive income, owning a home is also known as one of the best investments you can make because its value is set to increase over time. If you decide to sell it, you can earn a higher profit than the initial sale.
Naturally, you cannot use a house as an investment if you are simply renting it. All the money you pay as the rental fee will be directly given to your landlord.
Period of Residence
Are you planning to stay in the house for a long time or only temporarily? If your expected period of residence is within one to two years, renting will offer more flexibility.
But if you are looking for a permanent place for you or your family, owning a house would be the best choice. It provides more stability compared to renting. Tenants often have problems with residence stability because their stay will ultimately depend on the landlord. If it so happens that a new tenant will come in or the house will be sold, the current tenant will be forced to move unless stated in the contract.
Privacy
Do you prioritize privacy? Security and privacy are distinct advantages of owning a house. You can fully enjoy your property without worrying if a landlord will check up on you. Alternatively, tenants will need to abide by the rules set by their landlord. Take note that the landlord has the right to enter the house and do inspections if necessary.
Freedom to Renovate The House
Owning a house in the Philippines means you have complete freedom to renovate your place. By all means, add more kitchen shelves, change the layout of the rooms, and paint the walls into different colors. Those who rent a house are typically not free to renovate anything, or they need to ask permission from the landlord before doing so. Some landlords do not even allow drilling holes in the walls to hang up paintings or pictures.
Key Takeaway
Renting a house may seem like a simpler choice, but owning a home is the key to fulfilling one’s dreams. Whichever way you decide between renting and owning a house in the Philippines, you’d do well to know that the final choice should depend on your unique living needs.