According to Abraham Maslow’s hierarchy of needs, one of the basic needs of man to survive is shelter. A good home is not just one big dream that we all have, but a need that should be fulfilled no matter what. That is why, many of us work hard to meet this need - whether it is to save for your own home or to pay for a monthly rent. But in meeting this basic need, what is the best option that we can do? Is it owning or renting?
With many years of experience in the industry as a trusted licensed real estate broker, I often encounter homebuyers who want to stop renting small apartments and start paying for their own property. Often times, their decision to shift is they want to invest their hard earned money on something that they can call their own instead of paying for something that won’t be theirs in the end.
Everyone knows that owning a property is the best investment. I also encouraged people to invest their money on buying affordable house and lot properties instead of wasting their money on renting. But there are people out there who can not fully let go the idea of renting. So if you are one of those people, here are some differences of renting and owning properties that you should consider.
1. Maintenance expenses
House maintenance can be expensive. Depending on the kind of damage or change that your house needs, you will surely spend money. And you can’t just ignore it, because it can cost you more in the long run if you don’t fix it. Whether it is a clogged bathroom, a broken faucet, or damage roof, you need to be responsible in fixing these. If it is your own house, you have to do it or pay someone to have it done.
This is perhaps one of the advantages of renting, you don’t cover the maintenance expense of the home you are renting. If there is a clogged on your bathroom, or your roof is damaged, you can always contact your landlord and have it fixed for you. It is your landlord’s responsibility to look after your rented home, so you don’t have to worry about the expenses. The only problem will be is that you can’t expect the change to happen immediately. Sometimes, landlords tend to delay these kinds of situation since it involves spending money. On the other hand, if you are a good renter and has a good relationship with your landlord, and your landlord is generous, he/she can always prioritize these important maintenance.
2. Property tax
Just like the maintenance expense, you need to be responsible for the property tax of your home. Property taxes will depend on the location of your property. So make sure to know the tax laws in your area to avoid penalties.
Since you are renting the property, your landlord is the one responsible in paying all the necessary property taxes. You don’t have to worry about it. For sure, your landlord had it settled and had secured all the necessary documents and permits in order to make his/her renting business legal.
3. Earning Profit
Despite the maintenance expenses and taxes, the good thing about owning a property is that you can use it to earn extra money. Since it is your property, you can rent or lease it. You have all the rights to do whatever you want to do with your house. Furthermore, if you make improvements or upgrades on your property, it will only increase its value. So even though you spent hundreds of money on its maintenance, the value of your property, on the other hand, increases. You just have to be creative in thinking of ways on how to make use of your owned house and lot.
As a renter, you are limited in using the property. You cannot make major changes or use it for business without asking permission to your landlord.
There is nothing more satisfying than living in your own home. You have all the privacy that you need and you get to do all the improvements and upgrades that you want. It is also a sign of success. Having acquired your own property is a major accomplishment that you can share with your family.
Renting is enough to give you shelter. But there is no satisfaction in paying something every month that you know won’t be yours in the long run. It’s like wasting money. What’s worse is that you do that for a very long period of time.
Renting or owning will always depend on your situation and your decision. If you find renting a convenience, you can always save for your monthly rent. On the other hand, if you think that owning is a more practical choice, you can always save up to pay for your own home.
If you are ready to buy your own rent to own house, we have a good property listing that will suit your need. We have affordable house and lot properties located in Angeles City, Mabalacat City, Porac, San Fernando City, Mexico, Tarlac, Olongapo, Zambales, Bataan and many more areas in Central Luzon. You can browse our affordable rent to own units here.
If you want personal assistance on buying your first home, you can always call at 0918-963-6760.
About Mitch Prin
I am a licensed real estate broker who assists homeowners to find the best home for them and for their family. I am one of the Unit Managers of Hausland Development Corporation and Fiesta Communities Inc. I can help you find the most affordable rent to own properties at the location of your choice. I also give free housing consultation and free property visit. Let’s talk at 0918-963-6760.