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Rent a house or invest in a condo?

Hi!

I need some advice on whether it would be wiser to rent a house or invest in a condo with a duration of stay of around 5 to 7 years.

When renting a house, it's definitely a money loss.

When investing in a condo, wherein I would have to make a pag-ibig loan of around 20 years, money can come back; it may, however, be a bigger loss than renting a house. the point is, i don't know the dynamics of the pros and cons of investing in a condo unit. i have read some though, and the opinions vary.

In short, given my duration of stay, will it be on investing on a condo or renting a house that would cost me less?

Thanks in advance *okay*

Comments

  • jay372011jay372011 Member PExer
    Usually it is buying a house or renting a condo - but yours is the opposite. At any rate in my experience it took me a long time to buy my own place because i thought i have to live in either down south laguna or cavite or up north in bulacan just to be able to buy one because it is cheaper. But i did find a place that is near my work now. Because if i buy a place far from my work it is the same thing - i would be spending lots of money for transpo. Can you pls. give the advantages and disadvantages of both properties? The cost and others so we can hep you. How much is the home rental? How much is the monthly ammortization if and when you decide to buy a condo?
  • AkiFoblesiaAkiFoblesia Member PExer
    ^

    Thanks, sir, for your reply.

    The reason it is to invest in a condo is because I plan to stay on it for 5 to 7 years only, then resell it to get all the money back. As for doing the same for a house and lot, I simply cannot afford it on both near and a little far from ortigas, or I just am not aware of the cheap ones. The problem is I am not sure if it will work. Monthly amortization of condo units seem to go down to the point that I saw one that is as low as monthly rental rates of other condo. I may not be able to resell the unit once I move out if the lowering price trend goes on.

    That said, buying or renting between a house and a condo is a matter of which will be least costly for me within my "waiting period", and better if all my money would come back.

    In short, I need to determine the means to find a place to stay near Ortigas that will require from me the least cost or money back. I am already aware of the cheapest boarding house, but am trying to see if investing on a small property then reselling it can be possible.
  • jay372011jay372011 Member PExer
    Aki do you know Mr Delfin Lee of Globe Asiatique - yes the guy who gives the PBB house as grand prize. Sabi niya this is the best time to buy properties in general kasi tatas daw talaga ang presyo in the coming years. This being said by him any property will surely increase in value specially in the metro manila area. This is a general statement. Properties in malablon navotas dont count because of the flooding there. Same as in Ortigas which area?

    You mentioned about the monthly amort. getting lower? To make it affordable but dosent necessarily mean the prices are getting lower. The terms are improving(lower downpament and lower montly amortz) but the value does not necessarily mean that the properties are loosing its value. The worse scenario i have seen which was during the Asian Currency crisis. The prices are at a standstill. It did not go up and it did not go down.


    The problem i see in the future? Real estate is not a liquid asset and it may take time before you can resell it. Hope this helps.:)
  • BeerhandBopBeerhandBop I Am WHIP ✭✭✭
    here's.... the thing......


    cruch th numbers up yourself.

    calculate how much interest you'll have to pay. tandaan mo if bilhin mo yung condo at an utang most of the money your pay amonth GOES TO THE INTEREST and not to the principal amount.

    baka pagdating ng seven years and you have your utang checked out.. eh..

    magulat ka sa principal..

    and what the condo's value is nalang.

    keep in mind that a condo's value devaluates dahil naluluma sya. So pwede pang, bineneta mo yung condo mo, tapos ang benta mo is masmaliit pa sa principal na natitira. so abunado ka pa.

    mangupahan ka nalang muna kung saan ang kaya mo, ang aking masasabi.
  • paypinoystopostpaypinoystopost Banned by Admin PExer
    Continue to rent until you've saved up enough for a house and lot. Condos are set to depreciate due to oversaturation and less balikbayan buyers to prop up the demand (due to recession in the US)

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