In my previous blog post, I discussed how the pandemic changed the way we see real estate and mentioned a few tips on getting the best deals in the market. This time, we will try to figure out if it’s wise to buy or rent this 2022 or until the end of the pandemic.
Buying our very own home is every Filipino’s dream, and we will do everything in our power to make it happen. Even if we have to be in debt for the rest of our lives. But wait, let’s pause for a bit. Let’s weigh things out first, and ask these questions. Can we afford it? Am I trying to rush because my peers have already signed their mortgage contracts? Is this the right time to pull the trigger?
Let’s start with the first question (Can we afford it?).
We still have to figure out if our income can cover our mortgages and still sustain our families’ essential needs. Can we afford to pay it in the shortest time possible, or will we sign our wallets away to a lifetime of debt? If you already have a target property, do some due diligence. Most importantly, get the figures straight. Use a Loan Calculator, It’s going to tell you how much you’ll owe, the projected interest based on your rate, and a lot more. It’s well equipped to give you close to accurate numbers to help you decide if you can afford it.
I know it’s a little childish to be indirectly pressured by our friends. We always see their posts on social media chilling in their newly acquired home. This may have conditioned our minds that maybe we should be like them right now. Thinking about what others think about us because we’re still renting. But the truth is, they don’t care. They don’t even think about us. So make sure that you are making that big decision because you thought it through.
Third, I noticed that new development prices have gone up to ridiculous amounts. Yes, real estate during the pandemic is expensive. So think about it.
Renting on the other hand is frowned upon ever since I can remember. The oldies give renters the impression that they’re losers because they can’t afford to buy their own home especially when you’re in your 30s to 40s. But it has its perks.
Low cash out
I know I know; the place will not be mine. But renting will give you the power to choose wherever you want to live on the fly without emptying your bank account. If you choose to live in the outskirts, you’ll be paying even lower rates. Facebook Marketplace is the best place to look for a rental property. You can filter the price, and even choose the neighborhood.
Maintaining your own place is a costly ordeal especially if you bought a used or a foreclosed property. The annual cost to maintain the paint, plumbing, electrical, or anything that needs not to be neglected will leave a dent in your pocket. Not to mention that monthly rent vs mortgage is cheaper, and don’t get me started with real estate tax. Now If something goes wrong with a rental property, all you need to do is to call the owner or the manager and have it fixed free of charge.
The last one may seem shallow but I really take this seriously. If you happen to buy a house and have the worst neighbors, you’re kind of stuck with them. There’s no amount of homeowners” association that can make them go away. The beauty of renting is you don’t own that house, therefore you can always leave and even choose your neighborhood.
I hope you found this quick follow-up article helpful in your decision-making.