For new would-be property owners, deciding to buy or rent a home can be overwhelming. Many things go into making such a significant purchase, like financial stability, accessibility to amenities, and one’s preferred lifestyle. The goal is to achieve the lifestyle you want without struggling with monthly payments you can’t afford.
Buying vs. Renting a Condo: 4 Factors to Consider
Condos are an excellent option for your first home. To help you decide whether you should buy or rent a condo, we’ve compiled a list of factors and benefits you should consider.
Your employment status is the first and probably most critical factor in deciding whether to buy or rent a condo. Begin by asking yourself, “Do I have a stable job to buy or rent a condo right now?” If the answer is yes, assess how sustainable it is if you add condo fees to your current bills.
These are essential questions if you’re leaning toward buying since, aside from property-associated costs, you must account for monthly payments, including homeowners association fees (HOA) or a parking spot if you have a car. It’s better to be realistic now than to regret one option over the other later.
A financial assessment lets you know whether you can afford the down payment most condo purchases require.
That said, you could explore financing options, such as home loans from banks and other financial institutions. Check our home loan guide for the types, requirements, and tips on how to get approved for home loans.
Buying a condo vs. renting also depends on your lifestyle’s flexibility. For example, if you don’t mind staying in a particular location for an extended period, then buying might be right up your alley. On the other hand, renting might suit your lifestyle better if your job calls for you to move from place to place every so often.
4. Life events
As the adage goes, “life happens when you least expect it.” However, it’s in your best interest to determine how personal or professional milestones can affect your plans to buy or rent a condo.
Getting married, raising kids, or going into retirement are life events that may necessitate moving to a permanent home.
Pros of Buying a Condo
1. Homeownership builds wealth
Homeownership allows you to build equity instead of paying rent for a property that somebody else owns. Your home’s equity can appreciate over time, which is a boon when or if you decide to sell your condo.
2. Condos have great investment potential
Condos cost lower than standalone houses. As such, they can help you enter the competitive real estate market as a homeowner or property investor. If your condo is near business hubs like BGC, Makati, or Metro Cebu, you can readily find tenants to rent your condo and have a passive income stream.
If you’re entertaining the idea of purchasing property in the Philippines, a condo in Cebu may be a good investment.
3. Round-the-clock security and surveillance
If you value safety and security, you will find condominiums appealing. Most condos are in gated communities equipped with surveillance cameras and professional security personnel patrolling the facilities at all times of the day. Condo establishments implement these measures to ensure all homeowners feel secure.
Home upkeep is one of the costlier expenses if you own a house. Fortunately, you don’t have to worry as much about maintenance costs or squeezing the necessary work into your schedule when you’re a condo owner. Condos have dedicated personnel for painting, home repairs, waste disposal, etc.
How to Choose Between Buying or Renting a Condo
Condo buying vs. renting is a major life decision. It entails assessing your finances, needs, career path, and other personal circumstances.
As a young professional with a budding career and initial savings, you may consider renting for the time being. However, if working for years lets you enjoy privileges like tenure, buying a condo might be the purchase that can make your hard-earned peso more worthwhile.
Regardless of your life stage, deciding between buying vs. renting a condo involves determining what makes the most sense to you financially and personally.
If you’re currently renting a space and wondering if it’s the right time to move forward and purchase a condo, here are 6 Signs You Are Ready to Stop Renting and Buy Your Own Property.
Condos: To Buy or to Rent?
Deciding whether to buy or rent a condo can be daunting, especially for first-time owners. A lot goes into making such a big purchase, and it’s ideal to be well-informed and not make impulsive decisions. Hopefully, this guide can help you weigh whether buying or renting a condo is best for you.
If you’re looking for your first or next condo property, Mandani Bay can be your primary choice for its luxurious condo living and exceptional lifestyle. We offer a premier mixed-use residential community experience inspired by culture, creativity, adventure, and more.