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Given the choice, would you own or rent?


Rent or own property  

44 members have voted

  1. 1. Would you rent a house rather than building one if you could stay for life at a set monthly rent of P8,000?

    • Yes, please explain
    • No, please explain
  2. 2. Would you buy a property and build a house if you intended to stay in the Philippines for life and were able to do so?

    • Yes, please explain
    • No, please explain


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Brucewayne

The wife wants me to buy a property and build her a house, but I would prefer to stay in the rental house we are in until I am at least 65 years old as I had originally planned.

I have been here for 6-1/2 years at P8,000 per month with a freeze for as long as we stay, even for life if the house survives that long.

My problem with cashing in at this time is the stocks I have are growing and I feel that I could retire on a pile of money if I waited and could leave my daughter with a nice inheritance if I waited for six more years, but my wife seems to think that it would be better to buy and build with what I have now.

I am not so sure just what to do and am hoping to see anyone's opinion on this.

I am also willing to answer questions concerning this matter if I haven't posted enough information for you to give my request proper consideration.

Edited by Brucewayne
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I have always rented in Asia. I have never purchased any land, homes, apartments or condos. I have no intentions of ever doing so, either. I do not wish to buy an apartment / condo, so that would only

well, the money will be gone once u buy.   u spend 96000 per year on rent (are there utilities?)   if you spend 2 million on building, then u spend about the same as 20 years of rent (plus u need

People say what if she does this or does that, it's the same in the west even when your name is on the property. I know guys who married American women, had families only to later to get divorced and

Dolsos

Honestly I wouldn't bow to pressure from your wife to build a house "for her", if you build or buy a house it needs to be your choice knowing that you will most likely never see that money again in your lifetime and should (god forbid) something happen between you and your wife your rights to that house are nil.

 

If you would prefer staying in the rental then I think that is what you should do, why does she want a house built so bad?  Is the rental rundown?  In a bad area?  Far from family?   If thats the case maybe you can find a more suitable rental she will like better, may cost a little more but would probably be cheaper then building anything.

 

You could try to appease her and buy a lot now, telling her when you turn 65 you'll build a house there together.

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well, the money will be gone once u buy.

 

u spend 96000 per year on rent (are there utilities?)

 

if you spend 2 million on building, then u spend about the same as 20 years of rent (plus u need to pay insurance, repairs, and utilities)

 

 

personally i'm all for buying, but then..i trust my wife and I have my in laws and family  ''under control''.... (If i Might say it like that)

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ellenbrook2001

OH well depend on the circumstances if you have plenty money why not on the other hand if your egg nest will be very affected too live on until we dye dye then  that complicated beside too found a place too build ,where hes no noise,chicken,pig farm,traffic ,dirty,smelly not easy or a pinoy neighbor with no respect that not easy at all.

anywhere a come up with an easy solution too make sure my future wife will be look after when a dye a did make a will or the money left in the bank or will be still a lot will divided in 3 i have 2 daughters +my future wife so my wife can do what ever shes want  with it left it has invested  ,then shes can have a  monthly income too live well or withdrawn all then build a house of her choice but a did warn her be careful of the family cause the soon they will know money coming they will try too suck it ,i warn her so hes up too her.

anywhere i refused too rent only for $ 8000 i did used too live in luxury no way i am going too live has a poor a did my home work too be secured ,sure a can buy now but  my other pension will be very affected  so did opt too rent maybe i am wrong .

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Half Baked

I'm with Dolsos. It doesn't sound like you would be happy with "owning"(?) right now. I know the pressure that you are feeling with the wife wanting it, though. I'm pretty much in the same boat with you.

 

Building a 1.8 mil p house (thats just the house) on a lot (more money) would give you the equivalent of having 8k p rent for about 19 years. That 8,000p rent sure is tempting. But,Is the rental house big enough for your growing little girl? Does it have a yard to play in? Little friends nearby?

 

What happens if you build the house and the wife, in a few years, decides she wants to live somewhere else. I'm just saying. Lots easier to move from a rental than trying to sell.

 

Edit: but I live by the motto -- "happy wife, happy life"

Edited by Half Baked
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Pretending I'm in your situation, this is how I look at it. Since the money to be cashed in is going to a house, it won't be literally gone, but just moved to another investment. Your stocks are growing you say, but so does home value. I've never heard of home prices in the Philippines ever decreasing. They might not increase as high as the home prices in the US during a housing boom, but at least you're most likely not going to have to sell it for a fraction of the cost of building it. Plus you can add to your investment the 8,000/month you're paying in rent now once you have the house, which will give you $14,400 in 6 years on a 40-1 exchange rate, assuming it won't go lower than that, and that's before interest. But I agree that you should buy a house not because your wife pressures you to, but because you think it's a good decision. And if you make that decision, make sure the house is under both your names, if possible.

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SkyMan

There are pros and cons to both of course.  I have never liked renting mainly for maintenance and upgrades.  In the states I'd never rent because of the likelihood of profit and the tax breaks.  But there's no tax break here and the potential for loss is more likely unless very long term.

 

I don't like renting because you have to go to the landlord to get things fixed, and that's not a high priority to them, or DIY.  If you want to upgrade it's unlikely they will take anything off the rent for you expense so you are upgrading someone else's place.  The last place I rented had a really poorly done, institutional green, paint job in the sala and a bedroom.  I went to the landlord and asked if we could paint it and take the paint cost out of the rent.  They said we could paint it but keep the same color so I said no way.  Owning also has other long term bennies such as being able to plant fruit trees and actually see them grow to produce fruit but even if they don't yet, they will increase the resale value.  On the other hand, with renting you have the freedom to pack up and leave whenever you want.

 

A couple of pros for you buying/building now: 

  1. Suppose you had a car for many years and over time it developed a bunch of problems that were perhaps annoying but you learned to live with them because you didn't have time or money to fix them when they happened.  Then you decided to sell the old car and get something new.  But you realize that the car will fetch a better price the closer to new it is.  So you fix all the problems you'd lived with.  You get the engine check light turned off, you get the A/C recharged, fix the broken mirror, etc.  Then you think to yourself, "Gee, this car is pretty nice now.  Wish I'd done this way back when instead of waiting until now to sell it someone else."  That's kind of how it is with your question.  Do you want to live for X more years with whatever problems and worries of the rental you've already had for 6 years and then build the dream house or build the dream house now and enjoy it for a bunch of years you wouldn't have if you'd waited. 
  2. If you buy now you'll save the rent over time.  You basically earn over $2K a year so that offsets the loss from your investments some.  Likewise, choice lots are becoming more scarce and the prices are going up as well as the prices of building materials.  Waiting X years to buy/build could actually reduce your buying power from what you could get now. 
  3. Liloan is being bought up quickly so if you may want to act sooner rather than later or be forced to move north to get what you're looking for and that puts you farther from hospitals which isn't good later when you're older.

If you do decide to continue renting just tell your wife that when you pass she will get all your money and she can buy/build whatever she wants.  Maybe she'd be happy if you just bought a lot now?  The lot would be the lesser cost and there's almost no chance of the lot losing value.

 

Just some things to consider.

Edited by SkyMan
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smokey

its your wife ///  partner//// main squeeze////  love of your life  maybe she is not feeling as secure about life as you are 

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Paul

I have always rented in Asia. I have never purchased any land, homes, apartments or condos. I have no intentions of ever doing so, either. I do not wish to buy an apartment / condo, so that would only leave a home as a possibility. I cannot own land outright.

 

It would not be a wise choice to buy land in my name and her name, regardless of how much I trusted her. I have seen too many cases where the woman still got the house from the foreigner, afterward, kicking him to the curb. That will never happen to me.

 

Okay. Let's say I did trust women completely. If I buy / build a home where I may wish to live, it may not be where SHE would want to live. Once I am dead, she would not want to keep it. She would want to go back near her family. So, why build it in the first place?

 

She would be better off if I left the money in an account and had it in a trustee account with her being able to draw x number of dollars / pesos from it each month. I say this, because many Filipinos, given a bulk amount of cash at once, would not be able to control themselves. They would piss it all away in short time.

 

Just my thoughts on the matter.

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Wolfpack

because you have a young child, I recommend buying a house and lot...

 

in the event something happens to you, as long as you completed the citizenship requirements...your child will have income and a place to stay if you choose to buy...as opposed to rent...

 

so, wife opinion aside...buy for your child's benefit

 

in fact, I do not just recommend it...I have done it...for that very reason

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goldote

My vote is rent while keeping an open mind regarding the 'rolling overseas' of your investments. 

I spent many years stumbling around the islands looking for a decent place to live/buy. 

I apologize if I seem harsh, but I've seen so many dudes stressed and broke from the building blues. 

And I don't know enough about you to relate appropriately.  Sorry. 

I'm a rehaber, not a builder...and  I don't have to be a child's role model. 

I bought in for my wife but she earned the money stateside.

She always saves money and has learned investing.

I made her wait so long that she was shocked when I finally OK'd our Philippine purchases. 

I think you should determine why your wife wants the house.

Does she have the experience to build and allocate funds, stand in lines for titling....or will that be your job.

Do you want that job?  Do you have an attorney/friend to help?  If not, stay where it's fun for you.

Don't rush in. Rent until you find the perfect house/lot that passes all the tests.

Ideally you can have local friends check out the community, tell them your story and be invited in. 

Don't sacrifice mobility for a crowded, loud institution.  Know what you both want. 

Girls love shopping. Many have the 'how much we can spend' mentality.

Then there's the status thing....there's no end to that. 

It's a great ego trip...watching a kano build your house. 

Stay in control.  Don't be worth more dead than alive. 

I've seen so many build experiences not end well because of health or strife. 

Seems to be more crying than boasting. 

Edited by goldote
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A_Simple_Man

Both options are good.  I could not find fault with someone who chose either one, provided they knew and accepted the risks.  The risk of renting is that rents will probably go up.  You may live a long time and there are no guarantees.  The risk of ownership is that relationships sometimes fall apart.  You may live a long time and there are no guarantees.

 

If you didn't have a wife and child then the renting option would be the overwhelming favorite.

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USMC-Retired

I think simpleman hit on the key here. You must have full and complete understanding of what and where you plan to live and build. Most that get upset in the end did not have that understanding.

 

Sent using Tapatalk 2

 

 

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Brucewayne

Honestly I wouldn't bow to pressure from your wife to build a house "for her", if you build or buy a house it needs to be your choice knowing that you will most likely never see that money again in your lifetime and should (god forbid) something happen between you and your wife your rights to that house are nil.

 

If you would prefer staying in the rental then I think that is what you should do, why does she want a house built so bad?  Is the rental rundown?  In a bad area?  Far from family?   If thats the case maybe you can find a more suitable rental she will like better, may cost a little more but would probably be cheaper then building anything.

 

You could try to appease her and buy a lot now, telling her when you turn 65 you'll build a house there together.

 

She seems to think that if I build her a house, she'll have something when I am gone, I think she is a little bit too optimistic about spending a small fortune on something that would never bring what is spent on it.

The money I have invested in oil exploration has grown from $50,000 in 2010 to nearly $200,000 today and the way the U.S. is drilling, it looks like I could have anywhere from $500,000 to $1,000,000 in about six years.

I want to set aside $100,000 for my daughter's future in a trust account which she can only draw dividends off of for 20 years, then do as she pleases at age 38.

If I spend $100,000 now and set my daughter's money aside now, I will basically be broke other than the small rent I would be saving and living solely on my Social Security.

The P8,000 rent  for life where we are now seems nice as this is a large 3 bedroom house and the landlady takes pretty good care of it and we do have a large park on the property if we want to use it as a yard, but it is a short walk from the house, but still inside the fence.

The place isn't perfect, but it works for now.

The big thing for me is that when I find the lot I want at the right price, the wife complains it is too far from neighbors, road is too rough or maybe too far from her family.

I just don't know how to handle this where we can both win.

If she is quiet, I am happy, but to make her quiet at what expense?

I don't want a subdivision property with an almost shared wall and a 2 meter front yard, I am a 1,000 sq.m or larger guy who needs legroom and privacy.

A lot that size in a subdivision would cost several million and I know I can get what I really want for only about a million Pesos.

Edited by Brucewayne
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Dolsos

 

I don't want a subdivision proerty with an almost shared wall and a 2 meter front yard, I am a 1,000 sq.m or larger guy who needs legroom and privacy.

 

I completely understand that, I'd love about an acre but I'll settle for 400+, I can't imagine trying to live on an 80-100m lot which is almost invariably what we find for sale here.

 

In your specific situation I'd keep renting.  You know more about your investments then I do but the chance to reap a 100% increase in a few years is pretty worthwhile unless there are obvious deficiencies to your current situation she can deal with it.  Isn't being close to you the most important part?  God forbid something happens to you between now and then she can cash out and buy/build a house exactly where she wants it and not have to fight you over location.

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