Renting v Owning

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RBM
Posted
Posted
9 minutes ago, Dave Hounddriver said:

Things have changed over the years then.  We rented a couple of real nice places in Germany back in the 70s and all the normal cupboards and appliances were included.  I wonder if it has changed to be that way or if it is regional (as in it depends what part of the town or the country you are renting in)?

But back to renting vs owning in Philippines.  I lived through Typhoon Yolanda in a rental house.  I saw the damage to a hotel I stayed at in Cebu due to an earthquake in Oct 2013.  I constantly see news reports in Philippines of floods and volcanoes.  When I get caught up in the middle of a natural disaster like that I am happy to be renting and just walk away from it.

However, since I bought a place that is cheap enough, I could walk away from this one too.  Could I get insurance?  Probably.  But when I add maintenance and insurance and homeowners fees and property taxes to the cost of buying a house I am pretty sure renting is cheaper unless I stay in my own home for enough years to make a difference and unless the value of my property goes up (which may or may not happen in my lifetime in this country).  Almost forgot.  If i want to move I have legal costs and capital gains taxes to pay so I am losing money right out of the gate if I don't stay in my own home for a certain number of years. That number changes with time but I figured on 3 years when I bought this house.  By that I mean buying it, maintaining it, selling it and moving on will get my money back in about 3 years when I take into account what I would have paid in rent.  I am at that point now.

If one looks at this equation of buying verses renting Dave your comments are certainly valid. 

Many like myself, wish to have a base, a place where a landlord (apart from the SO) is unable to control us. The satisfaction of having a place to call home for me certainly out weighs the possible financial issues. Would be an interesting exercise however to rent similar to what we built would cost around P25k a month plus would need furniture. Some how I doubt we would be saving by renting not withstanding associated costs.

It's very satisfying to come home knowing that it is home. In so far as it can be, acknowledging as a foreigner one cannot land in his own rite.

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OnMyWay
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6 minutes ago, RBM said:

If one looks at this equation of buying verses renting Dave your comments are certainly valid. 

Many like myself, wish to have a base, a place where a landlord (apart from the SO) is unable to control us. The satisfaction of having a place to call home for me certainly out weighs the possible financial issues. Would be an interesting exercise however to rent similar to what we built would cost around P25k a month plus would need furniture. Some how I doubt we would be saving by renting not withstanding associated costs.

It's very satisfying to come home knowing that it is home. In so far as it can be, acknowledging as a foreigner one cannot land in his own rite.

Yes, this means a lot to some people, including my wife and I.  We wanted a place we could make our own.

That being said, I don't "own" in that I have a long term lease with a government entity.  That does have some other risks but in my mind they are small.

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OnMyWay
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29 minutes ago, hk blues said:

in the UK it's the case that if it's 'fixed' then it is left

Actually there is a whole industry built around cabinets that "look fixed" but can be easily moved.  Some really nice, good looking, quality cabinets are made like that.

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Dave Hounddriver
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34 minutes ago, RBM said:

. The satisfaction of having a place to call home for me certainly out weighs the possible financial issues.

This comes down to how much the individual can afford to walk away from in the event of some calamity.  It seems that the higher a person's budget, the more the concept of an owned home outweighs the possible financial issues.  Just my personal opinion, and as we have noted on another thread that has no cash value :hystery:

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jpbago
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1 hour ago, hk blues said:

From my memory, in the UK it's the case that if it's 'fixed' then it is left unless otherwise stated in the contract.  So, kitchen cabinets would stay but not the appliances if free standing. If built-in, then they stay.

I suppose that if that logic was applied here, everything would go because nothing here is properly fixed!

But we have fixers here! :smile:

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Snowy79
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I'm erring on the side of ownership also. My outlook is that I'm protected from rent increase and like has been said rental money is dead money. I'm fortunate in that an apartment like mine rents out at a minimum of 45,000 peso per month but dues, insurance etc is just under 4,000 per month. 

I've gone down the short term rentals though, daily to a few days in a row just to keep my eye on it. That and I could potentially get up to 90,000 peso per month on daily rentals. Obviously I'll them be paying a caretaker and electricity, WiFi etc. Still a potential 70,000 peso per month. 

With this in mind I've paid for my condo in 5 to 7 years realistically and if i move into it i know ill still only be spending about 10,000 peso per month inclusive of all dues and electricity.

The building was damaged in Yolanda but repaired quickly under the insurance.

Also as I've now spent the money on bricks and mortar it saves me blowing it on drink and women. I've met a couple of guys that had the money to buy a condo but 5 years later after hard partying can't afford one now. They're relying on their pensions and good landlords. 

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Dave Hounddriver
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23 minutes ago, Snowy79 said:

. I've met a couple of guys that had the money to buy a condo but 5 years later after hard partying can't afford one now.

Did we meet 10 years back?

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hk blues
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I've done both - here, the UK and in Hong Kong.

Must be my character but I always felt more at ease with life when I rented - less stress/ more flexibility.

On the other hand, I'd say the financials point to buying v renting over a period of time.

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mogo51
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On 9/8/2017 at 8:28 AM, hk blues said:

There lies the flaw in your plan!

Yes I take your point, they don't miss much.

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mogo51
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On 9/8/2017 at 10:12 AM, RBM said:

If one looks at this equation of buying verses renting Dave your comments are certainly valid. 

Many like myself, wish to have a base, a place where a landlord (apart from the SO) is unable to control us. The satisfaction of having a place to call home for me certainly out weighs the possible financial issues. Would be an interesting exercise however to rent similar to what we built would cost around P25k a month plus would need furniture. Some how I doubt we would be saving by renting not withstanding associated costs.

It's very satisfying to come home knowing that it is home. In so far as it can be, acknowledging as a foreigner one cannot land in his own rite.

That is exactly how I see it RMB. Most of my adult life, I owned where I lived or at least a big chunk of it, minus mortgage.  But when I rent, I just don't feel the same no matter how nice it is.  I like to sit back and think 'I own this' and in addition, I think well when I fall off the perch, this will be ok for my wife and she will at least have a home.  She at least will have earned that by the time my number comes out and I stop being a PIA.  

I have never really enjoyed renting because Asia especially, landlords have strange views on what is theirs????

 

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