There are so many factors that need to be consider before we can discuss if renting a condo unit is a better choice compared to buying your own house. Choosing to buy or rent, though, is a major decision that affects your financial health, lifestyle, and personal goals. Whichever option you choose depends entirely on your lifestyle and financial situation. Both require a regular income (so you can afford the payments and other expenses ) and may also require a certain degree of effort to maintain. But before you do anything, be sure to consider the risks involve, especially whether you rent or buy.
Renting a house is an ideal option for those who aren’t sure or ready to go through the homeownership journey. For a lot of people, renting a house is worth it because it offers financial freedom and flexibility since you do not have to spend money on maintenance, repairs, home insurance, and property taxes. Renting is probably the easier choice. However, when you rent, you can’t stay in your house forever because you don’t own it. When buying a condo, you’re only purchasing the interior space of your dwelling unit. The land and other facilities are owned in common with the other owners of the complex.
Condo unit owners on the other hand, get to capitalize on their condo’s equity, which accumulates over time. They also get to enjoy tax deductions on mortgage interest rates and other condo owner expenses.But there are several differences that make renting and owning property distinctly different. Renting a property doesn’t come with all the responsibilities associated with condo ownership and you have more flexibility, as you aren’t necessarily tied down to your property. Owning your condo gives you an investment but it does come at a big cost—both upfront and over the long run.
While on the other hand, buying a condo can make it convenient for those who wants to be free from monthly mortgage payments. Condos are generally more affordable when it comes to maintenance, because they come with less space — you likely won’t have your own backyard, for example, and the interior tends to be smaller than the square footage of a single-family home. Once you own a condo, expect to pay additional fees such as association dues. Association dues are required monthly contributions to the operational expenses of the condominium building. These include maintenance, utility, and repair expenses, wages of the condo staff and personnel, taxes and licenses, and any other miscellaneous fees used to maintain the building. Besides association dues, you will have to pay joining fees, electricity, water meter deposit, and other charges. You may also have to shoulder the renovation costs and upfront fees. In addition to these, while house owners are relatively free to make changes to suit their personal needs and tastes, condo owners are usually not permitted to remodel. While condos are smaller compared to traditional houses, they offer plenty of benefits. Condos are often located near amenities and this can be very convenient. Thanks to the recent condo boom, tens of thousands of condo units in Metro Manila are now available, giving renters plenty of affordable living options and a choice between many high-quality developments.
Renting a House
Renting a house or an apartment can be a tempting choice that needs to be considered when you want to save time and save money for future expenses. you can always look on the news and social medias the list of housed being posted for rent. You can rent a house if your savings are not enough to cover upfront home ownership costs. You need to consider all your income and expenses when it comes to renting a house. Renting usually requires a security deposit. A security deposit is a set amount of money paid at the start of renting a place. This sum of money is held by the landlord throughout the rental agreement or lease. It pays for any damage the renter caused in the unit until the end of the lease period. This deposit is theoretically returned to them when they move out, provided that they haven’t damaged the rental property.
When you rent, you know exactly your housing costs each month and that’s what makes it a very predictable expense. This amount is indicated on your lease so you can plan accordingly your financial obligations. As a renter, you may face rent increasing each time your lease is up for renewal. These rent increases can be even steeper if you live in certain parts of town. This may not be the case if you live in an area with rent ceilings and rent control, which limit how much a landlord can increase the rent, if at all. Renting means you’re able to move whenever your lease ends. However, it also means you could have to move suddenly if your landlord decides to sell the property for better investment or job relocation.
People were often prevented from owning land because of their race, ethnic background, beliefs, or marital status in the past. This is illegal. Although practices like redlining (where people are denied services because of their race or ethnicity) continue to deter members of minority groups from seeking to own a home, they shouldn’t. The borrower’s ability to make payments is the only factor that mortgage lenders should consider.
One of the benefits of renting a home is that there are no maintenance costs or repair bills. This means that when you rent a property, your landlord assumes full responsibility for all maintenance, improvement, and repairs. Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as in-ground pool or a fitness center come standard at many midscale to upscale apartment complexes with no additional charge to tenants.
Renters have the option to downsize to more affordable living space at the end of their lease. This kind of flexibility is especially important for retirees who want a less costly, smaller alternative that matches their purchase price.The amount you pay for your monthly rent is fixed for the span of the lease agreement. While landlords can raise the rent with notice, you can. budget more effectively. because you know the amount of rent you are required to pay.
Although homes can vary in size, they are typically larger than rental apartments. As a result, they are more costly to heat and also can have higher electric bills. Rental properties typically have a more compact and efficient floor plan, making them more affordable to heat and power than many houses.
Buying a condo
When it comes to buying a condo on the other hand, is another story. It can be a great way to dive into homeownership without worrying about the upkeeps that comes with single-family homes. When it comes to buying a condo, it is important to understand what your purchase includes. No matter how big the building or property is, you own your own place. You can ask from your community or colleagues if they can recommend a real estate agent whom they had good connections or experiences with. In that way, the estate agent will introduce to you the condo you are looking for- especially the ins and outs of the process, more especially someone with track records in condos.Your agent should know the condo developments in your area and what issues they might have, including finance issues and structure or infrastructure problems.
Condo fees can also come with more stringent requirements and higher interest rate than those for single-family house, as well as a larger down payment requirement. Condo living means less effort for maintenance costs. Condos offer a wide variety of amenities too, which includes swimming pools, clubhouse, gym, spas, outdoor grills, function rooms, recreational centers, playrooms, green spaces and other luxury-level perks. You can always tell to your agent the amenities you want to disregard using, but it is better to use it anyway because the condo association fees you are paying sometimes covers the upkeep fees for the properties and its amenities.
Depending on what market you’re in, a condo can be a much less expensive way to buy a house than purchasing a single-family property, making it ideal for first-time homebuyers or those with limited down payment savings. They’re a good option for those who want the benefits of homeownership, like building equity, but are on a budget. Property taxes tend to be lower, as well.
Buying a condo means you’ll be living in a community, which can be great if you want to be close to people and have a built-in social network. Some condo associations organize social events for residents, like pool parties, barbecues and holiday celebrations.
Buying a condo is a right decision too, wherein, it can be a practical and lucrative move that sets you up for future financial success because it allows you to build equity. As you pay down the mortgage principal and your property appreciates in value, you build equity that can be used as a down payment on your next home if you are planning to move for a bigger condo unit for you and your family. If you invest in real estate, it has the potential to increase in value over time
What to decide in the future
As I have tackled above the factors that need to be consider before you decide if you are going to buy a condo or rent a house, make sure you consider the ideas I have shared. The decision to rent or own depends on your financial situation and spend time determining your short-term and long-term goals to see whether renting a house, or buying a condo aligns with them. But it’s also about your comfort and vision for your future. Choosing the best location in the city can be the best decision you can ever make, because it gives you convenience in life, especially with shopping malls and banks near you, there’s nothing to worry about. When you already have enough funds to shoulder the other costs in paying the home prices, you can decide and settle which one to choose.
Investing in life is one of the other factors that can change your personal life. Invest in other things too that can generate funds so that it can make your life easier for you to pay other expenses in your daily living. Wether buying a condo unit or renting a house, you need to consider the prices you are paying for. The average rent does not differ from the purchase price when it comes to buying a condo or renting a house. You just need to have enough money when buying a condo so you can own it eventually. Renting a house on the other hand, you just need to secure your security deposit plus the monthly payments that you need before you can rent a house.
All in all, you’re decision will always be beneficial for yourself and that’s what I guarantee you, which depends on your own personal situation—your finances, lifestyle, and personal goals. You need to weigh out the benefits and the costs of each based on your income, savings, and how you live. Living the life of having the luxury goods and convenient for you always matter the most. Asterra Condominiums always got your back. You can always buy a condo whenever you want as long as you can afford the expenses and sell it eventually for investment whenever you want too. Asterra Condominiums is one of the condominium brands to rise, that offers you newly-built condo units with affordable price located at San Fernando, Pampanga, Calamba Laguna and at General Trias and across the different parts of the Philippines in a few years more. Be a part of the growing industry and let’s continue to embrace the modernization world we are living with.
Written by Clariz Legaspi