It’s part of every adult’s life: the moment you realize that you’re just wasting money (even time) on renting an apartment or a house that you’ll never own.
You always have a reason why you can’t stop renting. It can be because of financial issues. You think that your current salary won’t be able to take on the huge responsibility of buying property. You may also blame your ever changing location. Sometimes, your job requires you to move to different places, and owning a property feels like it’s a huge waste since you’re not always going home to it. Or maybe, you feel frightened on the idea of being the sole responsible on the maintenance of a house.
Whatever your reason is, it’s time to pull a stop on your endless doubt and start investing on things that matter. Persquare listed down the most valid reasons why you should stop renting and convince you to start paying your mortgage instead:
1. You’re only making your landlord rich
Yes. It’s the sad truth. You’re only making your landlord rich. Your landlord is busy building his equity while you waste your money on a property that you’ll never own. What will happen after you move? You’ll lose every dime that you have invested on that property. Instead of paying for your landlord’s sake, start paying your mortgage. You’ll feel a lot better afterwards.
2. You need to start building equity
Equity refers to the amount of money that you owe and how much the property costs. It builds when you pay your mortgage and other taxes. It also helps to increase the house’s profit when you want to sell it. Building your own equity means can be beneficial to you in the long run.
3. You want stability
Remember that the landlord owns the property and that he or she has the power to increase your monthly payment whenever and for whatever reason. But when you pay for your mortgage instead, your monthly rate will stay fixed as long as you shall live in the property.
4. You have the down payment
Why waste the money that you saved on something that is trivial? Stop wasting your hard earned money on endless nights of clubbing or a weekend of shopping. Try investing it on a property that you won’t regret.
5. You want total control
You’ve been dying to change the living room’s paint but your landlord won’t let you. You’re willing to add some dirty kitchen on your property’s backyard but the landlord always say no. It’s one of the cons of renting: you don’t have complete control over the place. It’s different when you own a house. Owning a house means that the whole maintenance is under your control, that you are the master of the sanctuary that you live in. And isn’t that wonderful?
6. You want to settle down
The apartment that you’ve been renting throughout your singlehood may not be able to pass the stress and intensity of having a family. It’s better for newlyweds or to those who are planning to start their own family to have a house that they can call home. This establishes security for you and your whole family. It’s an investment that you and your future kids will always have.
7. You have more loan options
Thanks to the increasing development in the Philippine economy, banks are now willing to offer more flexible options to make buying property easier. The typical mortgage rate in the Philippines are 7% to 10% and has a typical financing period of up to a decade. You can choose to loan from a bank or loan from Pag-ibig or SSS.
Now that we already convinced you (hopefully) stop renting, the only question left is to how you will quickly pay your mortgage – in case that you decide to have one. Here are some tips that can help you:
- Pay extra – It would be better if you pay extra to your mortgage. The extra can go to your principal balance. Just make sure that your extra goes to the principal and not to your next month’s payment.
- Downsize your lifestyle – Loaning is not only a huge responsibility, it’s also a huge sacrifice. The money that you save from cutting off your morning frappe can go to your mortgage instead. This might come off as difficult but the end product is totally worth it.
- Target pay-off date – Choose an attainable pay-off goal. You can use online mortgage calculators to know when and how you can pay your loan the right way.
It’s time for a fresh start! Stop renting and start planning more a more stable investments. Don’t fret! You can always ask the Persquare team for any questions in all things real estate.
Source Image: http://www.persquare.com.ph/for-sale/condominium-ncr-metro-manila-makati/162-sqm-3-bedrooms-condominium-edades-rockwell-makati-for-sale-b85_19703 – Home Discovery