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Is buying a house practical?

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taski24

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Reply #240 on: Feb 22, 2019, 09:36 AM
^On a purely financial point of view, yes probably, it's a liability.  But, what if you loose your job and you have a good size family or the land lord doesn't want to renew you contract? Had this experience before so I realized the importance of having my own house.  No rent to pay, no contract to expire, no landlord,  I can do all the things I want in the house. 

We can agree to disagree.

I only recommended renting to the post starter because she is still single, and her money would be better invested elsewhere.

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Bought a house way back in 90's for 1M and lived there for almost 20 years. Bank amortization is around 9K while rental during that time is around 10K.  Rental in that place is now is 18K.  So Amortization (9k) is less than Rental (10k) at the start.  After 10 years, the house is paid, no more amortization.

9k x 12 months x 10 years = PhP1,080,000.
You failed to mention how much was the downpayment for the house.
I am pretty sure the bank would not settle for P80,000 profit for 10 years.
I am presuming that for that P1M house, you paid P2M in a span of 10 years.
Correct me if I'm wrong.

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BTW, house is worth 3M now.

Will you sell it? If not, then that P1M profit is only in your head.

Buying a house is never practical.

Why?

Because no one would settle on just the basics.

You want the best that your money can buy.

And there lies the problem.






leomar

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Reply #241 on: Feb 22, 2019, 02:40 PM
all assets and all liabilities are used in computing one's networth, yung ibang assets are not as liquid as others pero for me real estate properties, including houses/condos/raw land, are still part of one's networth...

selling a house or land, or liquidation of it, is another matter hehe


leomar

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Reply #242 on: Feb 22, 2019, 02:43 PM

Will you sell it? If not, then that P1M profit is only in your head.


paper/unrealized gain, yes unless ibenta, it will be in the form of cash...
pero sa ngayon, market value will still go to the networth computation...


Wertiu

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Reply #243 on: Feb 23, 2019, 01:50 AM
I would go for it. I understand that when you rent you are more mobile and can move to any place you like, even change the city if needed. But see yourself in 5-10 years, isn't it better to have your own place? Life is unpredictable and you never know if your income is going to stay the same or raise. In my opinion if you have opportunity now just go for it. When I had opportunity I bought cheap property on the French Riviera https://tranio.com/france/cote_d_azur/   and now have my house and rent some rooms out during summer for very good money.


 


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