Adulting 101: Buy or Rent?

Moving out is not customary for Filipino families. Unlike in western countries wherein upon reaching the legal age, you are required to move out and live independently – doing part-time jobs while studying.

Independence means that you will have to find a way to live by self-supporting. From the past 10 years, this tradition is breaking little due to the fact that a lot of Filipinos consider getting their own apartment or space. But is it really wise to rent a space for a long time?

Ever since the rise of condominiums in the country, many have been eyeing to get one for their own. This is not just for people with families but also for those who wants to build themselves and establish new life without the help from parents and siblings. The idea of moving out is hard due to the fact that our culture dictates that as long as you are still single, you can stay with your parents. Nowadays, a lot of young professionals consider getting their own space. However, there’s a lot to consider. Finances.

When it comes to spending, we all have one question in mind. “How much are you willing to spend?”

Most of the time, young adults would rather rent first because of strict budget. It is expensive to buy a house right away especially for those who just started with their career. It takes months, years for one to earn money to shell out for downpayment. While both renting and buying a house require monthly obligation, when we think about it, buying a house is the best way to go. Why? Simply because we would not want to spend money for something that will never be ours. Though buying is a bit more than paying a rent, there are organisation/s and institutions that will help you out take a loan which can be adjusted in flexible terms. Aside from the fact that there are so many affordable homes surround the city. You just have to set up priorities in choosing the right one by considering the location and neighbourhood that you would like to be part of. Another reason why buying is better than renting is because of other fees that you would have to pay to your landlord. There are renting spaces where you will be asked to pay for a deposit good for 3 months, will ask you to pay for parking fees, service area fees, move out fees and even appliances fees. It is financially exhausting and unwise to spend that much when you can budget your own money if you have your own house. No parking fees, no security deposit, no appliances fees and most especially, no move out fees.

We are not getting any younger and sooner or later, having a family of your own is going to be part of the list. Handling household finances is exhausting and it must be stable therefore, you have to think of a better way to manage how it should be spent. Also, you wouldn’t want to just give away your hard-earned money for something that will never be under your name. Starting to invest for your own house at a young age is okay. The earlier you start, the earlier you’ll finish paying for your mortgage. By that time, you can save your money for other things while enjoying the fruits of your labor with your loved ones.