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Is buying a house practical?

IGX · 250 · 50807

taski24

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^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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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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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...


IGX

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Update ko lang thread ko hehe.

Still renting, no property yet, still regret it, but as my net worth grows the price of houses grow too.   Hindi makahabol.

As for the GF, he got engaged with another guy from a rich family.  Hindi ko maibigay ang mga demands nya


ChloeAntonio

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If it's an asset and not a liability. Then it would be more than practical. HTH  :rakenrol:


nightwatch

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Update ko lang thread ko hehe.

Still renting, no property yet, still regret it, but as my net worth grows the price of houses grow too.   Hindi makahabol.

As for the GF, he got engaged with another guy from a rich family.  Hindi ko maibigay ang mga demands nya

While prices of properties and rents are zooming up specially in the POGO areas.  Some local renters in those areas are complaining being moved out for the higher paying tenants.  This is one of the sad experiences I had when renting, being kicked out and have to find and move my family to another location.  Probably farther from your children's school or from your work.  So, never again.   I got my  set of properties where no one can move me out.  Been here for the last 20 years, away from the polluted city, and can take my coffee while looking at Taal volcano anytime.  Your choice, if you still believe that asset vs. liability thingy.

Just saw the comment on

Quote
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.

The appreciation of property, I used to take new loans to build another house on one of my vacant lots.  Now being rented for Php60k/month.  Cost of loan is more that covered by the rent plus the whole property (including the newly built house) I now own because the money used is from an old property that appreciated a lot in value (that I'll be renovating and will rent out too). So asset vs liability?  Go ahead.


IGX

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While prices of properties and rents are zooming up specially in the POGO areas.  Some local renters in those areas are complaining being moved out for the higher paying tenants.  This is one of the sad experiences I had when renting, being kicked out and have to find and move my family to another location.  Probably farther from your children's school or from your work.  So, never again.   I got my  set of properties where no one can move me out.  Been here for the last 20 years, away from the polluted city, and can take my coffee while looking at Taal volcano anytime.  Your choice, if you still believe that asset vs. liability thingy.

Just saw the comment on

The appreciation of property, I used to take new loans to build another house on one of my vacant lots.  Now being rented for Php60k/month.  Cost of loan is more that covered by the rent plus the whole property (including the newly built house) I now own because the money used is from an old property that appreciated a lot in value (that I'll be renovating and will rent out too). So asset vs liability?  Go ahead.


I get your point.  What location are you residing?

I am just worried as this is my situation:

1) I don't work
2) All my expenses come from my investments

If I buy the house I want, I will only have 20% left of cash and that will only give me enough passive for electricity, water, cable.   How do I eat?  Where do I get money to pay for gas.

I have no friends, so I have no network, which means it will be hard for me to find a job at my age.

So my dilemma is:

a) Live my life the way it is where I live on passive income, but I don't own a house
2) Own a house and have the house I want, but have to get a job to live my life



nightwatch

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@IGX now I understand your situation.  Honestly, I would also think twice about buying a house if I'm on the same situation.  I'm in the Cavite area. If you're single and not working, why live in the city?  You can probably rent a better place outside the city at a cheaper rate (use the extra for your investment). In my area, we basically have all, probably more than the city offers.  Hospitals, churches, malls (we got it left and right) schools, plus the nature.  If you're looking for a work, Call centers I believe doesn't look at the age.  I've work with retirees before when I'm still in that industry.


IGX

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Thanks @nightwatch.   I've been looking at properties online both in Cavite and in the Metro, prices are almost close to each other.   I love to travel to the north which is what keeps me staying in the metro, its nearest NLEX.   I also looked at the Bulacan area, but it seems like all areas always get flooded.  No nice neighborhoods like Cavite or Manila.

If you notice my grammar I'm not good at english.  I'll look into the Call Center job but I hope there is something for me there.


nightwatch

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@IGX, I've tried looking at the North before but I find the weather at the South better. Flood is not an issue.  Only when you want to go the Metro.  Correction on the call centers, what I meant is BPO.   Some will not really require a very good english and by BPO, it doesn't mean you need to talk to people orally.  Some will just require answering queries on email or chat.  Some people like the gamers account like EA, working while playing.  There a lot of opportunities.  BPOs are already spread in other areas like North or South.  Probably choose a BPO that has an account according to your expertise (ex. accounting, technical, games, telco, Tourism, etc).  Some are open to part timers.
« Last Edit: Jan 14, 2020, 02:10 PM by nightwatch »


 


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