Renting or buying

[OnMyWay]

14 hours ago, gbmmbg said:

Unfortunately more then 51% of homes in the world are not custom built.

I think we could safely say that 99+% of homes built in the Philippines are not built with expats supervising design and construction.  And anyone who thinks the average Filipino supervised house construction is not substandard has not spent much time in those types of houses.

[gbmmbg]

2 hours ago, JJReyes said:

However, in the Philippines, what developers charge and the rental income you can get doesn't make sense.  If you decide to buy, the reason should be "lifestyle" and forget about the property being an investment.  

I have had this conversation over and over with people.  I stick to the 1% rule. However the the rentals we have here in the philippines were bought 5,10 and 15 years ago. I can't see how someone can stick to it with what everyone is asking nowadays.

[hk blues]

4 hours ago, JJReyes said:

My preference is rental.  The reason is to avoid all the associated headaches like paying property taxes, association fees, constant repairs, utilities, home improvement, etc.  Technically, the added convenience means we are paying more.  However, in the Philippines, what developers charge and the rental income you can get doesn't make sense.  If you decide to buy, the reason should be "lifestyle" and forget about the property being an investment.  

Yes, there are taxes and fees to be paid but I don't think an annual trip to City Hall and HOA office can really be classed as a headache. Yes, they cost money but when renting they are built into the rent fee so you're still paying albeit indirecty. Utilities are payable whether you rent or buy, surely?

Repairs and improvements are, for me, one of the reasons to buy rather than a reason not to. I don't want to live in a s******e that the landlord refuses to maintain - which they will in many cases here. And, I want to be able to upgrade as and when I want,  not somebody else.  Worse still, upgrade and then be kicked out by the landlord. 

I rented in HK a couple of times and it was nice to be "hassle free" but that was in a city where landlords are strictly managed - that's not the case here.

I've always been a buyer rather than a renter but definitely see plus points for renting - just not the ones detailed above!

 

 

Edited January 21 by hk blues

[hk blues]

17 hours ago, gbmmbg said:

IMO buying can be a big risk but with risk comes rewards. 

1. Unless you a great deal on the place you buy it will be hard to sell if you want to move or go back to your homeland.

2. You don't own it unless its a condo. I know there are 100 different ways to trick the system, but have fun in court trying to explain to the judge " why you leased land from your wife..  etc.etc

3. Most houses built in the Philippines are substandard to say the lest.

A long list can follow but in the end my wife and I don't like living in other people's homes so we buy,then rent out or sell when we want to move. It has worked well for us for the last 38 years or so. However if you don't want to be a landlord or take years to sell, rent. Like i said just MHO.

2 wrongs don't make a right but have you seen the state of new builds in the UK? Horrific in many cases. Just last week one of the quality developers started the destruction of about 50 brand new, never lived in units due to foundation issues. 

Quality here can be poor but it's definitely not always the case. And, never forget the old adage  - You get what you pay for. A 5-bedroom detatched house for 60k GBP in the UK - better add another zero there.  As long as the bones are there you can pay to upgrade at your leisure and budget.

[OnMyWay]

1 hour ago, hk blues said:

2 wrongs don't make a right but have you seen the state of new builds in the UK? Horrific in many cases. Just last week one of the quality developers started the destruction of about 50 brand new, never lived in units due to foundation issues. 

Quality here can be poor but it's definitely not always the case. And, never forget the old adage  - You get what you pay for. A 5-bedroom detatched house for 60k GBP in the UK - better add another zero there.  As long as the bones are there you can pay to upgrade at your leisure and budget.

On Facebook, I follow a Home Inspector in Texas, and it seems that most of his work is new home inspection.  A lot of stuff he finds is scary, but a lot is so bad it is comical.

https://www.facebook.com/Systematic.Home.Inspections

Edited January 21 by OnMyWay

[stevewool]

Well again thanks everyone for replying and giving your thoughts , I’ve always brought houses while here in England , but as we are going to give the Philippines a go and also not sure where we want to be renting is the way to go for us at first and maybe forever as we have no one to leave the house too, but like folk have said if we did find a place we could change our minds or move if the place we are renting turns into something out of a horror movie 

[Snowy79]

I'm firmly in the group that thinks long term renting is a waste of money. By all means rent for a few months in an area before buying but once bought I don't see it as dead money. 

From my personal experience I got a bargain in an area where rental prices are very high. My condo paid for itself in 5yrs. 

I can still move any time I wish and try rentals with the knowledge that technically I've had 5yrs ( now 6yrs ) free rental as my property is paid off and doubled in value. 

Now I can rent my condo out and with the money afford an even better rental elsewhere and it costs me nothing as my condo tenant will be covering my new rent, and the added bonus my condo keeps increasing in price.

If I was to sell tomorrow I'd have made at least 4.5m profit on my initial investment and saved myself a good 3m in rentals. 7.5m in 6yrs to me beats a 3m loss any day. 

[Possum]

3 hours ago, Snowy79 said:

I'm firmly in the group that thinks long term renting is a waste of money. By all means rent for a few months in an area before buying but once bought I don't see it as dead money. 

From my personal experience I got a bargain in an area where rental prices are very high. My condo paid for itself in 5yrs. 

I can still move any time I wish and try rentals with the knowledge that technically I've had 5yrs ( now 6yrs ) free rental as my property is paid off and doubled in value. 

Now I can rent my condo out and with the money afford an even better rental elsewhere and it costs me nothing as my condo tenant will be covering my new rent, and the added bonus my condo keeps increasing in price.

If I was to sell tomorrow I'd have made at least 4.5m profit on my initial investment and saved myself a good 3m in rentals. 7.5m in 6yrs to me beats a 3m loss any day. 

But you are in Boracay . A unique and desired location. Much different from the rest of the country.

[hk blues]

11 hours ago, Snowy79 said:

I'm firmly in the group that thinks long term renting is a waste of money. By all means rent for a few months in an area before buying but once bought I don't see it as dead money. 

From my personal experience I got a bargain in an area where rental prices are very high. My condo paid for itself in 5yrs. 

I can still move any time I wish and try rentals with the knowledge that technically I've had 5yrs ( now 6yrs ) free rental as my property is paid off and doubled in value. 

Now I can rent my condo out and with the money afford an even better rental elsewhere and it costs me nothing as my condo tenant will be covering my new rent, and the added bonus my condo keeps increasing in price.

If I was to sell tomorrow I'd have made at least 4.5m profit on my initial investment and saved myself a good 3m in rentals. 7.5m in 6yrs to me beats a 3m loss any day. 

As I said previously, I'm a buyer every day of the week and agree the financials make sense but, to be fair, there is another side of the equation which may be attractive to renters - not least flexibility that owning doesn't necessarily offer.  Also, for many, if not most, they take a mortgage so that has to be financed that eats into any perceived savings, as does the opportunity cost of tying up money in a home if it's a cash purchase. And, the potential for negative equity should the s**t hit the fan just as you need/want to sell.

I've done well out of buying and subsequently selling my homes but I definitely see why some may prefer to rent.

Edited January 24 by hk blues

[fillipino_wannabe]

Houses do ok and maybe condos in Boracay etc but the 4-5 mil peso condos I looked at in BGC when I moved here 7 years ago now sell for the same price or a little less despite the developer prices nearly doubling in that time, owners of those would of made much more money putting their money in stocks or even gold.

Edited January 24 by fillipino_wannabe