Unsure whether to buy or rent a condo? Take a look at these deciding factors regarding affordability and monthly costs. It should help you decide if purchasing a condo for sale in Pasig is a better decision compared to initially renting it. Take note, you are not just considering your budget plan when it comes to buying or renting a condo unit. You must also consider creating and building your equity plan for the future.
Affordability and Location
When it comes to affordability, Filipinos will look at the rental as well as the overhead costs of renting versus buying. Apart from the increasing popularity of apartment-living in the Philippines, condominiums are getting a big share of the types of housing that most Filipinos would consider availing. Indeed, affordability is the number one factor that any first-time homebuyer would look at. Location and size are some of the most significant influences on the overall price of a condominium unit.
Since condominium unit costs depend on the location, it is best to take a look at the purchase and initial renting costs. Buying a condo would require you to pay the 10 to 30 percent down payment depending on the terms of the condominium. Commonly, you will be given up to 24 months to pay a 20% down payment with zero interest. On the other hand, the initial renting costs require deposits. On average, an owner may charge as much as PHP 15,000 for reservation costs, apart from the first payment of the monthly rent.
Your decision on whether to buy or rent a condo should depend on your capacity to pay the amount required. Filipinos would initially rent a condominium due to many reasons. One of which remains depends on the nature of their work but typically, they do so just to test if the condominium, as well as the location, is suitable for them.
The sizes of condominiums today have gotten smaller compared to when condominiums started to rise. Regardless of whether it has something to do with the scarcity of good location or the efforts of developers to accommodate more units in the complex, the reasons for reducing the size of condo units greatly affect the decisions of many buyers. According to research, most condominiums located in Metro Manila have an average size of 50 square meters. What used to be a standard size for studio units is now the standard size for a one or two-bedroom.
With that, your decision on whether to buy or rent a condo should depend on your lifestyle. Are you planning to live in the condo for the next couple of years or do you plan to live in it in the meantime? Either way, it is recommended to buy a condo for the reason of growing your equity as early as now. Investing your money in condominiums presents a suitable vehicle for growing your equity portfolio.
Equity and Investment Potential
As mentioned earlier, buying a condo remains the most favorable way to build equity. The market value of a condo increases a hundred times faster than renting a condo or any type of housing in the Philippines. The overall market value is less the liabilities such as mortgage due to the unit entitlement and ownership. Even though a condo appreciates much slower than a single-family home or an apartment, it still presents the best investment vehicle.
Cost of Associated Fees and Monthly Fees
Whether you buy or rent a condo, the associated fees will remain the same. You will have to pay a certain amount for the maintenance and repairs of the areas as well as amenities that all tenants, including you, enjoy at any time. Buying a condo unit means you have ownership but the responsibilities do not end with possessing the title only. You will have to consider the utility bills and repairs of your own unit which should be included on top of your monthly unit payment if you are renting.
For those who are not willing to compute plenty of billing statements every month and worry about the monthly payments every now and then, it is best to look at the terms in buying the condo. You may shell out a larger sum of money, but the incremental expenses should be reduced every month. Take some time to compute the payments while considering the time and headache that you alleviate from yourself. A budget plan that allows you a little wiggle room should be your final deciding factor on whether to buy or rent a condo.
Apart from considering your housing budget, you also wish to improve your financials and get aboard a great investment vehicle, purchasing a condo for sale in Pasig should be the best option for you. Otherwise, initially renting a condo would enable you to think over your plans for the future. Take note, association fees and other miscellaneous items are one and the same whether you Buy or Rent a Condo. Especially for the maintenance of the amenities that all condominium tenants enjoy.