^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.
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.
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.