The Pros and Cons of Buying and Owning a House

With a median price of P8.8 million in Metro Manila, buying a house may be a burden for a family that earns an average income.

If you’re looking into buying a home of your own, you need to be aware of the pros and cons of buying property.

The advantages

The financial implications of taking out a loan to finance the purchase can be a little harrowing. It may be a struggle, but with perseverance and proper financial management you may be able to secure your dream home sooner than you think.

These are the points to consider:

• The long-term cost of ownership is less than renting a house

• You have full control over your property

• Acquiring a house is a capital gain (the property is always valued higher than the original price – however, the gain is not realized until the asset is sold)

• Property taxes can be itemized for tax reductions

• You have a sense of security that comes from owning a home as the property is well-protected from inflation

The drawbacks

Despite the various advantages, you should be aware that property value depends on market conditions. While the value can appreciate during a boom period, it can depreciate during an economic downtime.

Location should be taken into consideration. If you want to buy a house in Makati City, you need close to P100 million for that purchase. The other sought-after locations are Quezon City, Tagaytay City, and Baguio City.

You have less flexibility, as you are tied to the location of your property, and cannot simply move right away when the situation calls for you to transfer to another place.

It can be one of the reasons that hold you back from taking a new job in another town or move to another country for the sake of your children’s future.

Costs

When you feel that buying a house is a priority, keep in mind that there are costs beyond the property’s value such as closing costs, value-added tax, and registration fees.

There are also maintenance costs to consider, such as renovation and repairs.

It is in your best interest to work with a reliable and licensed real estate broker. Legitimate brokers can help you find a house that’s within your budget, and guide you on the various laws on property ownership and taxation.

Research and discuss with family members when you start planning to buy a house as an absolute necessity. Take into account the location, your budget, the daily commute, and accessibility in general when the need to have your own house arises.

(Source: GMAnetwork.com)