Should I rent a house and save 2.5 million in 5-6 years and cash in a house, or should I just get a house loan early?

[rschlap]

EDIT:
I just reserved my first house in Phirst Park due to the following:

1. Good location, good enough house, accessibility and amenities fit me
2. Quick turnover (if the developers are true to their words, personal circumstances need me to move out quickly)

I can't afford the 400k dp for PAGIBIG so I did Bank first and then I'll transfer it to Pagibig after a year or so. 18k Monthly Amortization. Pag sa Pagibig na, hopefully 10k nalang.

I'm very scared but I'll do my best to be opportunistic to make this work.

Thank you for all the wisdom everyone. Everyone has their own story, background and circumstances and I value the wisdom you shared to me here!

(Og question below)

I'm 24/F. I'm just starting out in my career but I earn 55k - 68k per month. Lost my savings to my family so I'm moving out and starting over independently.

Edit: I work from home, and would be working from home in the future (wala opportunity sa pinas LMAO). I don't plan to have a family either.

I can save 2.5 million in 6 years. Kaso baka by then sobrang nagtaas na uli properties.

Ang mahal ng houses ngayon, ang mahal ng pagtaas nila pero ang mahal din ng interest sa PAGIBIG.

Please lend me your wisdom

(Tbh parang less stress pag nagrent pero ayoko nattempt maging complacent if mahihirapan ako in the future)

 

[renewed24]

@rschlap I guess you can just use this as a reference. Way back in 2019, a certain house and lot in cavite (~63sq m two storey semi furnished) is 1.4M PHP.

2020, the same property was being sold already with a price tag of 1.7M. Fast forward to 2024, the same property is being sold as 2.7M.

The price hike is being controlled by the real estate company

 

[rschlap]

@renewed24 Yeah. Mom bought a house in Idesia Homes 1.9million a few years back. Ngayon 3.4 million na. Kaya siguro nagmamadali rin ako bumili, I feel like mapagiiwanan ako ng opportunity

 

[devonrestored]

@renewed24 I agree, Philippines is a fast growing because many forces are driving up property values including filams that have made a lot in USA returning to invest and or return Philippines. I also think job growth in Philippines is contributing.

 

[freeyourself]

@renewed24 2019 is not way back.

 

[spacehistory]

@renewed24 Grabe ang taas no nakakaloka.

 

[idiotonabike]

@rschlap Save up first and ask yourself if you really need a house. Wala ka ba plans mag abroad? Is it near your workplace? What if lumipat ka work?

And what happens if you lose your job and wala ka savings? Unless you get a higher paying job, you’ll probably loan and pay your house for 15 to 30 years. That’s a frckng long time to get tied especially since you’re single and just getting started.

Your plans should be flexi. Who knows, baka mag abroad ka, maging digital nomad and work anywhere. Why tie yourself to a house. It’s only an investment if you’ll use it and it’s convenient for you. Yung iba, may bahay nga, ang layo naman sa place of work. Talo na sa hulog, talo pa sa pamasahe.

 

[rschlap]

@idiotonabike In 6 years I can save up 2.6 million. Baka lang sobrang di ko na maafford pag 6 years pa ko bumili house huhu

I'm WFH no plans of marriage. Just want my own abode.

 

[pelargir]

@rschlap Put your savings in an index fund so it also grows

 

[rschlap]

@pelargir Can you tell me more about Index fund? I'm not very informed in investments sadly. Would like to educate myself rn

 

[pelargir]

@rschlap Bro go learn it from your bank or something. Kahit saang bangko merong index fund

Get one that tracks the US market instead yung local.

Dont bother with VULs kasi money pit lang yun

 

[nischaly]

@rschlap Index funds are the way to go. Look for low cost index funds with low expense ratios. There are tons of index funds but personally (this is not investing advice) all my funds are US based and track the s&p500 or total market. Ticker symbols to point you in the right director VOO and VTI; Both are from Vanguard, an established US financial company.

Investopedia.com is a good source to start learning.

 

[ajay004]

@rschlap You can also consider living in a condo with 5% dp you can move in once approved ang loan. No need to save that much. I’m sure you’ll do well in your career and increase your salary. Gawin mo rental yung condo airbnb kung magclick and nag appreciate na yung price, use the capital gains for your dream house.

 

[spacehistory]

@idiotonabike Agree ako. Dati may mindset pa nga ako na mas ok house and lot kesa condo pero paano kung may house and lot ka nga pero outside metro manila. Matagal commute. Mahal pamasahe,hassle at pagod. Ayun naisip ko na aba, practical din condo Lalo pag nasa central at MRT/LRT. Ok din parenta kasi central area.

 

[isabella63]

@spacehistory WFM is the way to go if you plan to live outside of the Metro. I was able to purchase a house and lot in Cavite (117 sqm lot, 54 sqm house) for 2.3m. You'll be paying at least double for a condo half the size ng bahay na ganito sa loob ng Metro Manila.

 

[spacehistory]

@isabella63 Yeah. If work anywhere like IT related ok talaga. Or hybrid pero once a week or twice a month need mag office.

 

[nato12]

@idiotonabike We've had this conversation with my workmates one time during lunch and what she said made sense.

Kapag kumuha ka raw ng bahay, tied ka na sa location na yon. What if lumipat ka ng work na mas malayo sa current work mo ngayon? > "Talo na sa hulog, talo pa sa pamasahe"

Consider your work as well if it will last for the years you'll be paying for the house. Kasi what if nawalan ng work (wag naman sana), pano na yung pang hulog sa bahay? Or mag iba ng work na hindi na kasing laki ng sinasahod mo ngayon?

A house will only be an investment if may pagmamanahan ka. Kasi halos buong buhay mo babayaran yung bahay tas maeenjoy mo lang during your retirement years. Worth it ba to work your ass for 20-30 years to pay yung bahay tas maenjoy mo lang nang 5-15 years? (kung tatagal ka pa nang ganon sa mundo since swerte ka na nga raw ngayon if aabot ka pang 60?) So ang talagang makikinabang lang is yung pagmamanahan mo hehe

 

[selenad]

@nato12 Paanong 5-15 years lang maeenjoy? Di ba ginagamit/ineenjoy mo naman sya while binabayaran mo kasi dun ka nakatira?

 

[ccm500]

@rschlap I have been renting for the longest time. This allows me to move from one place to another, cheaper rent, better location, etc. I have been saving all these years and by the time I am ready to settle down in one place (near retirement) that's when I'll buy a house and lot with my savings.

 

[mosta]

@ccm500 I love your plan