At times I wonder, does paying rent seem to be a waste?

2 weeks prior to our wedding, we decided to rent a place here in Biñan. One of the key factors on why we chose the place is because of the accessibility to the national highway plus the terminals where we ride the public utility vehicles going to work.

Fast forward, COVID-19 hit and most of the terminals closed down including the one near our place. Under the presumption that we will be back in the office anytime soon, we held on to our place of residence.

Photo by Lance Grandahl on Unsplash

Some say that renting, in general, is bad for your finances because at the end of your contract the place where you reside will still be owned by either the landlord or the owner itself.

Our parents from both sides offered to their homes for us to stay while we are saving but at onset we politely declined the offer as we want to experience our lives together without the intervention of both parties. We also know that we are lazy bums so this may have a negative impact on the good relationship that we have with our in-laws.

Renting has been in a negative connotation here in the Philippines. When someone is renting a place this means that they do not have the capability to have their own place especially if you have a stable job. The naysayers have always something to say about it.

If you feel that way, don't worry I understand you as we are in the same situation. Maybe in the next years 5 or 10 years we will still be here but who knows if Hive will go to the moon the plan will be hastened. But to encourage you and myself as well renting can never be a waste.

I'll be sharing with you some of the things I learned while we are renting.

Always note that whatever the "marites" will say to you it will be your decision think about what is your best interest not the interest of others. Are they helping you pay your bills? Heck no right?

Renting is Affordable vs Monthly Amortization.

Prior to renting our place. I always thought that owning a house will be a better choice as it is more affordable than renting. But upon further review now that we have the time to check turns out that renting is way cheaper than paying for your monthly mortgage.

Photo by Mari Gimenez on Unsplash

We currently pay $160.00 per month in our place - water and electricity included and as we search for a house to live in permanently we found out that a small house within the city area would cost us around $300.00 per month for the downpayment good for 12 months and then additional $300.00 after the downpayment period every month until the loan matures. This does not include the payment for electricity, water, furnishings, etc. Btw, you cannot move in yet until the whole downpayment is paid in full.

When renting, the cost you pay is just the 1-month advance and 1-month deposit to start staying in the place.

Renting Can Adjust Easily in Your Lifestyle.

If you do not have a permanent job like us. Renting your place of residence will be a better deal because you will not be tied in your place. Selling a home is never easy, tedious, and expensive too! When I was a mortgage collector this is one of the most loved arrangements that we offer to the ones who are in default. Offer their house to be listed for sale.

Photo by Jon Tyson on Unsplash

Since the permanent work from home set-up has been announced in our case we have decided to move out and be in the rural area. This Thanksgiving weekend, we will be checking some places to rent in San Pablo to determine where we will stay in the coming years while saving we are seeing deals for up to $60.00 per month and it is already a house compared to what we are renting right now a small room with a toilet.

To Rent forever or to Own a House?

It really depends on you. Renting is way cheaper than owning a house but for us we are still eyeing to get one where we can call our own. Though financially wise rent is a good alternative, if you own your house you can have your own rules. Paste and hammer all you want, change the color of the rooms and many more that you cannot do when renting.

I'd suggest saving up at least the deposit. Some need at least 20% or 25% depending on the mortgage company. Then every month add extra payment directly to the principal so that when the time that you need to reassess your loan there's a chance that you get a lower rate and lower amortization.
Or if the Hive will be in $10.00 or more, sell your hive and buy a house instead pay it upfront. We can always do some wishful thinking right?

If you made it this far thank you for your time. What is take on renting? Is it really a waste?

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