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Should Married Couples Rent or Buy a House?

  • by admin
  • July 28, 2021
  • Home Buying Tips | Tips

Getting married means it’s taking a big step forward in your life. There’s no going back, so you’ll have to face new challenges like learning how to live with someone else and compromising on financial decisions. 

This move will have an impact on your life for the next few years, so it’s important to think about what kind of new home would meet your needs and match your financial status as a new couple.

Ideally, this decision making should come first before tying the knot to save couples from hassles and enjoy their honeymoon!

This boils down to the question of whether you are going to make boss move and purchase a property or start small and rent out. 

There are a lot of things to consider in making this decision. One is you should evaluate your current financial status. 

Can you comfortably purchase a home? 

And if you’re going to rent out, are you emotionally ready to live with much less privacy? 

You and your partner should have clear goals on this matter. Below, we have listed the pros and cons of buying and renting a home that may help you in making a wise decision. 

Advantages of buying a home

If you are thinking of buying a home, here are the advantages of owning to help you make that bold move. 

1. Great investment. Owning a property is one of the best long term investments a couple can make. The value of the land appreciates over time and this is especially true in the Philippines where lot prices have spiked over the past 5 years.  

mansfield in 10 years

2. Source of peace of mind.  Owning a home gives you a sense of security and gives you a chance to establish roots and create memories for your future.

3. Gives greater privacy. Owning a home means having your own parking lot and your own service area. You will not be bound by rules and definitely no nagging landlords that visit every now and then.

4. Gives you a sense of pride. There is nothing more rewarding than to be able to provide shelter for yourself and your family that you will cherish for the rest of your lives. 

5. It ignites the creativity in you! The moment you buy a home, it opens up endless possibilities. You can remodel to your liking or just sit back and enjoy life in the space you’ve created for yourself and your family.

6. It’s your protection from rising rental fees. Owning a home means having stable payments all throughout. Unlike in renting, fees can increase during contract renewal.

 

Disadvantages of buying a home

There are always two sides to the coin. Here are other considerations to make when buying a home.

1. Down payments can break the bank. The average down payment a buyer should prepare is at least 10% to 20% of the total contract price of the property they’re purchasing. 

2. Owning a home comes with big responsibilities. Think about all the costs that come with owning a house. Utilities, repairs and maintenance are just some of the many expenses that come with owning a property.

3. Mortgage can be higher than rental fees. Although mortgage is a stable payment, rental fees are relatively cheap, especially during the first few years.

4. House and lot properties are illiquid assets. Illiquid refers to the state of a stock, bond, or other assets that cannot easily and readily be sold or exchanged for cash without a substantial loss in value. With property, this means that it’s hard to quickly sell your property for cash whenever you need money.

 

Advantages of Renting

If you are married and not yet ready to buy a property, these are some reasons why you might consider renting.

1. It might be tempting to buy a home, but renting is usually cheaper. Advance payments and rent deposits are significantly lower than paying for a 20% down payment in purchasing a property.

2. Renting is a much better option than buying when you’re not sure where you’ll be in the next few years. It gives you the flexibility of moving at any time.

3. In most cases, renting is a much cheaper option than buying a home because you will not need to pay property taxes, utilities and maintenance.

 

Disadvantages of Renting

On the other hand, renting may not be the best idea when starting a family because of these disadvantages.

1. There is minimal privacy in renting.  Sharing living spaces with strangers isn’t easy and uncomfortable. You can’t select your neighbours and adjustments are inevitable. 

2. Renting gives you limited space. Unfortunately, renting a home is limited by your landlord’s ability to give you the space you need.

3. Rental fees increase over time. Although it can be difficult to predict the future, you should know that the prices tend to go up. The rent for a house can increase by 30% in just a few years!

4. Renting binds you to the rules. You cannot make changes or innovations in the house. You are expected to follow the regulations agreed upon in the contract.

 

There will always be risks and advantages whether you are buying or renting a home. That is why it is best to weigh your options and choose what benefits you the most. 

On the other hand, if you are ready to buy a home, we at I Am A Homeseller can help you! We have the best property listings that are located in prime areas. 

Check out Mansfield Residences and Timog Residences in Angeles City. 

Mansfield Residences and Timog Residences currently have an ongoing promo that you can avail of! 

Talk to us at  0918-963-6760 so we can help and assist you in owning prime properties in the city!