Tuesday, February 7, 2017

Why House Rentals Have Now Become more Popular than Brand New Purchase

To many Filipinos, the idea of 'dreaming big' has long been instilled in our mindset ever since we were kids. A lot of people equate success with acquiring properties, and to the younger generation, being able to achieve these things at an earlier age is way better.

Of course, real success isn't just measured through material possessions. In fact, different cultures and beliefs have their unique means of evaluating success. In most culture, however, dreaming big means acquiring something tangible – something you can be proud of. And among the most popular things to own is a personal home.

Who doesn't want to have his or her own house?

A lot of us do. Why not? If we have a house, we can do anything we want without having to worry about other people telling us some rules and policies we must follow. But while owning a home seemed like the best way to take up a peaceful residence, it doesn't seem to be gaining much popularity as of late.

With the rising cost of real estate, more people are now looking at home rentals as a better alternative. Below are some specific reasons why renting has now become a more preferable option than buying a brand new property.

No need for maintenance or repair expenses

This is perhaps the most popular advantage that rentals have. When you rent, the landlord shoulders the need for repairs and maintenance of the place. You can leave common issues like broken faucet, leaking pipes, burnt out light bulb and all to the owner of the property. There is no need to hassle yourself with the need to pay for anything.

Free access to luxury amenities

This is very much apparent especially to properties like a condo unit for rent in Makati. Instead for individually paying for usage of pool, fitness gym, golf course and any other entertainment facilities, the rental package already includes free usage of these services. With the fix amount you pay regularly, you already get to enjoy these added services anytime.

No need to pay for real estate taxes

Buying a new home also means that you have to shoulder the corresponding tax associated with the property. The bigger it is, the larger will be tax requirement. This can eventually be a financial burden especially when you plan to expand your property in the future as this would mean increase in tax payment too. Renting, on the other hand, will do away with this financial hassle.

No more issues about huge down payment

Whether you rent or buy a new house, a down payment is necessary. But between the two, a brand new purchase undeniably requires bigger amount. More often than not, renting a property only requires you to give a down payment good for a month's stay. Buying a new home on the other hand will require prospect owners to pay a certain percentage of the full price of the property, which is ALWAYS way bigger than the ones you pay for renting.

No more worries about the decreasing property market value

They say that real estate is a dynamic market, and investing on it is a wise choice. However, there isn't any guarantee that one's property will keep its market value for years to come. The changing market can dictate the amount of tax or mortgage you pay over time. Renters on the other hand don't have to worry about such complex computations and huge payment since the landlords are the ones responsible for handling the bills.

There is nothing wrong with dreaming to own a house. However, it's important to be rational and consider the practicality of your decision before making any purchase especially as big as a house and lot. Consider your needs and weigh your options well. Will you and your family do better if you buy that new home or will renting be a better choice?

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