To buy or to rent? That is the question.
The debate of buying vs. renting your home is never-ending with both sides full of valid points. One side says buying a home means security and good investment while the other camp says renting is the smarter move in the mobile times. The thing is, different lifestyles have different dwelling needs. There are several factors to consider such as your financial capacity, career trajectory, family considerations and location.
But what if we take location out of the equation, and place it, say, in Marikina where the place is both charming and urbane, the people are friendly, the history is dignified, and the opportunities are aplenty.
Let’s say a one-bedroom condominium in the distinguished Marquinton Residences is offered for rent at Php 15,000 a month while a one-bedroom condominium in the new Siena Towers is selling at Php 3.4 million with a 20% down payment and Php 24,000 per month amortization for the next 10 years at 9.5% annual interest. Which is the better choice – renting or buying?
Well, there’s no right or wrong answer. The right or wrong choice depends entirely on you, your needs and your plans. You will have to think long and hard when making this decision. To help you, here are some pros and cons of buying and renting.
What are the advantages of renting a condo?
Easy to Move In
Moving into a rented apartment is easy and affordable. For most, you will only need to pay one-month advance and two-month security deposit to move in.
Hassle Free to Move Out
Moving out is as easy when you have not signed 10 years of your life to a home loan. Don’t like the landlord? Move out. Neighbors are becoming annoying? Move out. Moving to Makati? Move out and look for a new condo in Makati.
However, note that your landlord might refuse to return your security deposit even without any damages or repairs incurred.
No Property Tax
As a tenant, you do not own the property. No property, no property tax.
What are the disadvantages of renting a condo?
Taxes, repair and association dues in the condo complex may be computed into your rent. Should these costs go up, your rent will increase as well. You have no control over rent increases unless otherwise specified in your lease contract.
Tenants have a monthly obligation to their landlords: rent payment. If you cannot pay rent on time because of an emergency, some landlords will understand and give you an extension. Some will not. For some landlords, non-payment of three months’ rent is a basis of eviction.
If you have investment plans in the future, buying a condo is the way to go. Though a condo’s market value appreciates slower than a single-family home, a condo still has better investment potential than a rented apartment. Because as a tenant, you do not own the apartment so you cannot build equity. On the contrary, you are helping your landlord build equity.
What are the advantages of buying a condo?
There is a sense of pride and security in owning a home. You can do with it as you please. You can paint your unit your violet; install constellation patterns in the ceiling; renovate the kitchen, or get an iguana pet. Most of all, no one will evict you for late rent payments. There is no landlord to answer to.
No Payment Hikes
Unlike in renting wherein you have no control of rent increases, buying a condo for sale gives you several payment options. You can pay through cash terms, or apply for a mortgage or home loan.
If you go the home loan route, your mortgage may have fixed or variable rates – depending on the bank policy, the property value and your financial capacity. For your convenience, your bank or developer will provide you a schedule of fees to guide your check releases.
A condominium unit is a long-term investment that will appreciate over time. Eventually, it will pay for itself and if you play your cards right, can make you money.
What are the disadvantages of buying a condo?
Huge Financial Responsibility
Owning a home costs a lot. Unless you have a truckload of cash to pay upfront, you will need to deal with a home loan that can tie you up for 25 years.
Aside from making sure you can afford the monthly amortization, you should also have a budget for the reservation fee, down payment, closing costs, bank fees, title fees, mortgage insurance, and others miscellaneous fees.
Once those are settled, remember the monthly homeowner’s association (HOA) dues and the annual property tax.
Cost of Selling
When you are ready to put your unit on the market, you might already picture the money going into your bank account. Reality check, selling a unit costs money too. First, you will need a real estate agent, which costs up to 7% percent of your unit price in commission. Then, you will need to merchandise your unit either through an open house or web listing, in which you will need to touch up the unit and fix the minor and major repairs. Lastly, there is the closing cost. Closing costs are expenses over and above the property price including capital gains taxes, business tax, and notary fees.
The least of a renter’s concern is the maintenance and repair of the unit. Condo owners, on the other hand, is responsible for all the repair and maintenance of the interior of their condo. You will have to buy and change that busted light bulb and call your plumber for that clogged toilet.
Buying or renting a condo is always a big financial decision. Your choice would depend on your priorities, plans, and finances. In the end, it is best to pick what suits your current needs and will make the most logical choice in five years. Federal Land, Inc. has several pre-selling and ready for occupancy condominium properties in Marikina City – the renowned Marquinton Residences; the Spanish-inspired Tropical Garden City; and the new urban playground Siena Towers – that will accommodate your various lifestyles, needs, and aspirations.
From the developer of the distinguished Marquinton Residences comes a radiant prime development at the heart of Marikina city – Siena Towers. A modern take on the Italian town of Siena, where rural charm and modern progress abound, Siena Towers goes beyond being a home by providing outstanding lifestyle choices just outside your doorstep.
Siena Towers is a two-tower condominium project offering a beautiful and secure preselling homes in a vibrant community with its own shopping mall a few steps away. Residents of Siena Towers will enjoy outstanding amenities; quaint homegrown retail selections; proximity to major weekend destinations; I.T. business parks; premier schools like the Marikina Science High School, Ateneo de Manila University, Miriam College, Center for Culinary Arts, and the University of the Philippines, Diliman; and spectacular views of the Sierra Madre in the East and the Metro Manila skyline in the Southwest.
At Siena Towers, live in an exciting lifestyle playground you can truly call your own.
Made up your mind? Email us at email@example.com to get your dream condo in Marikina City today.