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Financial and Non-Financial Aspects of Owning vs. Renting

There are usually two broad categories that influence the entire decision-making process, these are the financial and non-financial aspects. However, some people focus more on the first and compromise on the second. This should not be the case since, while the second aspect is intangible in nature, it plays a critical role in the decision.

The financial aspect

Importantly, you need to know whether or not you can afford to buy a house and lot in Tarlac like Amaia Scapes Capas or rent near Tarlac City. You need to consider your capability to pay the down payment and all other initial costs including the moving in cost and homeowners association membership fees, among others. Covering these initial costs that aren’t otherwise required if you are renting is only half the battle, though.

Moving in is just one part of the special or one-time costs. Others are furnishing,  renovations and other improvement projects. These costs are mostly shouldered by the buyer unless he or she will buy a fully furnished, ready for occupancy place to live in. Landlords pay for the maintenance of these projects too, although he or she may choose to increase the monthly rent for a period to cover the costs.

Even so, there are recurring costs to factor in as well. Aside from the monthly repayments, owners need to pay for the utilities and other household expenses too. While the actual spending varies, these are the costs that both owners and renters need to pay on a monthly basis. The real costs vary on the location of the property and usage.

The non-financial aspect

After doing the math and deciding that your financial capacity can service the ongoing payments and associated expenses, now is the perfect time to consider the non-financial aspect. Some real estate experts would agree that you should consider the non-financial aspect first and not the other way around. The bottom-line is you must consider this point too!

Urban vs. suburb

Other than deciding on a place that’s near your workplace, the environment you chose to live in will definitely affect your quality of life. Would you prefer a city lifestyle with charming cafes, bars, and restaurants, gyms and spas? Do you prefer green spaces? Do you like the character of the entire neighborhood? If you can afford to buy a property situated in a location that is not to your liking, you should psyche yourself first if you are willing to concede your preferences or rent instead. With renting, you get to live in a place that you truly want to live in, but that’s it – the place is not and will never be yours.

Flexibility vs. stability

To continue with the above, renting is mostly plausible for people who change their minds (hence, preferences) constantly. If you are not certain what you like in your own place, you might as well rent. It gives you the freedom you need whenever the landlord tells you he or she needs the place or whenever the owner chooses to increase the rent. The financial consequences are minimal because you only need to find a new place to rent out. With ownership, the process is more complicated. Should you decide to sell the property, you still need to pay the monthly amortization and continue paying for the utilities it incurs unless you paid the house and lot in full. That’s until you find a suitable buyer. Then again, the property is yours should you decide to keep it and you can stay there for as long as you desire.

Security vs. guarantee

With your own home, no landlord can just decide to displace you. You can stay put for the years to come. What’s more, you can make the house and lot your own. You may have extras if you want. You may landscape the way you want. You may put any décor on the wall. All of these things cannot be done for rental homes, apartments or even condo units. Hence, if you just want a place where you can rest and freshen up after a day’s work, you’re better off renting.

Personalization vs. in-built

Owning a house presents an opportunity to decorate it any way you want. However, this convenience comes with the upkeep responsibilities. Unless you can allocate a budget to hire a professional to do the remodeling for you, you also need to spend an hour or two wandering the aisles and looking for the materials at your local hardware store. Renters, on the other hand, need not worry about the wear and tear of anything inside the rental property because the landlord will take care of these.

You can always calculate how much you need to pay for buying or renting a house. However, the aspects that may affect not just your lifestyle but the quality of your life and the overall satisfaction cannot be calculated. You can always rent but you cannot call the place your “home.” On the other hand, you may buy a house and lot but after careful consideration of its implications especially the non-financial ones. Bottom-line, if you can find a property to buy or rent, make sure that the sacrifices involved are minimal otherwise you might find yourself scouting for another residence to relocate sooner than later.

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