Renting vs. Buying a Unit Near Your Workplace in Metro Manila: Which is More Beneficial?

The cost of living in Metro Manila is notoriously high, and this is especially true when it comes to housing. If you're working in the city, you may be wondering whether it's more beneficial to rent or buy a unit near your workplace.

There are pros and cons to both renting and buying, and the best option for you will depend on your individual circumstances. Here's a closer look at each option:

RENTING

Pros:

• Lower upfront costs: When you rent, you don't have to worry about making a down payment or paying closing costs. This can save you a significant amount of money, especially in Metro Manila's expensive real estate market.

• More flexibility: If your circumstances change, you can easily move out of a rental unit. This can be helpful if you get a new job in a different part of the city or if you need to move for family reasons.

• Less responsibility: As a renter, you don't have to worry about repairs or maintenance. This can save you time and money.

Cons:

• You're not building equity: When you rent, you're essentially throwing your money away. You're not building any equity in the property, so you won't get anything back when you move out.

• You may have less space: Rental units are often smaller than condos or houses, so you may have less space to live in.

• You may have less control: As a renter, you're at the mercy of your landlord. They can raise your rent or evict you at any time.

BUYING

Pros:

• You're building equity: When you buy a property, you're building equity over time. This means that you'll eventually own the property outright and you'll be able to sell it for a profit.

• You have more space: Condos and houses are typically larger than rental units, so you'll have more space to live in.

• You have more control: As a homeowner, you have more control over your property. You can make changes to the interior and exterior of the house as you see fit.

Cons:

• Higher upfront costs: Buying a property requires a down payment and closing costs, which can be expensive.

• Less flexibility: It's more difficult to move when you own a property. You'll need to sell the property before you can move, which can take time and money.

• More responsibility: As a homeowner, you're responsible for repairs and maintenance. This can be time-consuming and expensive.

So, which option is right for you? It depends on your individual circumstances and preferences. If you're looking for a lower upfront cost and more flexibility, then renting may be a better option for you. If you're looking to build equity and have more space, then buying may be a better option.

Ultimately, the best way to decide is to weigh the pros and cons of each option and make the decision that's best for you.

Here are some additional factors to consider when making your decision:

• Your financial situation: Can you afford the monthly rent or mortgage payments? Do you have enough money saved for a down payment?

• Your lifestyle: Do you plan to stay in the same place for a long time? Do you have a family or pets?

• Your future plans: Do you plan to start a family? Do you want to move to a different city?

Once you've considered all of these factors, you'll be in a better position to decide whether renting or buying a unit near your workplace in Metro Manila is the best option for you.

By: Carlo Jay (CJ) Manalo
Bachelor of Science in Real Estate Management
Pamantasan ng Lungsod ng Maynila