Should I rent or should I buy house and lot?

[DanielJ]

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Simple rule of thumb is if the total amount spent paying the monthly mortgage should not exceed 30% of your monthly income. If it exceeds 30% you should rent. If you can afford to allocate 30% on mortgage then rent.

[MAGNETIC.LEVITATION]

Simple rule of thumb is if the total amount spent paying the monthly mortgage should not exceed 30% of your monthly income. If it exceeds 30% you should rent. If you can afford to allocate 30% on mortgage then rent.

Unsay pasabot nimo ani bro?
"total amount spent paying the monthly mortgage should not exceed 30% of your monthly income. If it exceeds 30% you should rent"

Dili ba in either way if mortgage exceeds my monthly income, I'm at a loss?

[cebu.opportunities]

Unsay pasabot nimo ani bro?
"total amount spent paying the monthly mortgage should not exceed 30% of your monthly income. If it exceeds 30% you should rent"

Dili ba in either way if mortgage exceeds my monthly income, I'm at a loss?

This is how banks/lenders compute your capacity to pay.
It is presumed that 30% of your monthly income or salary is the "excess" money you'll have.

To have a closer-to-reality computation, list down all your monthly expenses (personal basic needs, education, future baby, "wants", emergency fund and other financial obligations and deduct the result to your combined (husband and wife) income. You'll have an idea of how much monthly amortization are you capable of paying in case of availing a housing loan.

[junnix]

If ang low cost housing through pagibig cost 2K plus like kang Demonyito then I would prefer this. Ang question naa paba kaha ni? If naa asa ang location.

[-_-]

If ang low cost housing through pagibig cost 2K plus like kang Demonyito then I would prefer this. Ang question naa paba kaha ni? If naa asa ang location.

mostly naa na guro na sa talisay/liloan/mandaue/lapu-lapu
either way mo add jud ka para sa transpo padung metro cebu

[cebu.opportunities]

If ang low cost housing through pagibig cost 2K plus like kang Demonyito then I would prefer this. Ang question naa paba kaha ni? If naa asa ang location.

naa pa mga low cost housing. talisay, casili, cordova. . .

[NARRA]

murag pareho gyud ta situation bro sauna 1997, nagkuha kog balay sa bgry bacayan, cebu city thru pag-ibig low cost housing kay nagtrabaho ko sa IT Park.

Dako hinuon ko nagasto:
1. Dili pa nimo mapuy-an dayun, 1.5 years pa na turn-over namo.
2. Kinahanglan pa nimo butangan kwarto kay wala pay kwarto.
3. Ang akung transpo allowance ni times ten kay magsige naman noun ko taxi kay layo kaayo unya ma late naman ko sa ka traffic.
4. Karun wala nako sa cebu, gusto namo ibaligya wala pa gyud tawn nahalin kay mahal naman ang presyo kay naka gasto naman ka rennovate.

IMHO

[oh_juana]

consider the following:

1. how much money do you have now? do you have enough for downpayment and equity for buying a new house and to cover the expenses of your newborn child? if you do, better buy a house. why?

a. renting is very inconvenient, especially when you have a newborn
b. you will never get your rent money back, whereas, monthly amortizations for a house is an investment (you can sell your house)
c. monthly payments for a low-cost, studio-type house (usually 25 sqm) is cheaper than monthly rent for a 16 sqm room for rent. although, location of studio-type or low-cost housing is not as accessible as rooms for rent are.
d. there is no guarantee your landlords will fix whatever needs fixing
e. if you cannot pay, PAG-IBIG is usually more civil than any landlord when it comes to paningil.

2. regarding your plans to go abroad, when? will both of you go at the same time? murag dili, di ba? usually, naa jud na usa mauna. inig larga sa usa, ang nahibilin manginahanlan gihapon ug kapoy-an

3. asa mo ga-work? if cebu city mo work then mupalit mo ug low-cost, studio type na house sa lapu-lapu city, for example, kaya ninyo ang commute? i-consider sad ang transportation cost

sa akong personal experience, 3 years ago ga-rent ko room near USC-TC. with own bathroom and mini-kitchen. free water but separate electric meter. room dimension, including bathroom, approximately 2 meters by 6 or 7 meters. sudlunon ang room. mubaha sa gawas kung mag-ulan. huot ang agi-anan. pero duol ko sa tanan. layo lang sa work kay sa lapu-lapu ko ga-trabaho. ako rent kay 4,000 kada buwan.

then, nikuha ko ug 2 ka unit na low-cost, studio-type sa isa ka subdivision dinhi sa lapu-lapu. akong equity for the 2 units, murag 96,000, plus almost 100,000 on improvements. ako monthly amortization is 5,400++, for 30 years na. monthly association dues for 1 unit, wala ra kaabot 200. and isa ra ka unit ako gpuy-an, ang isa ako gparentahan for 3,000 monthly.

ang area sa isa ka unit more than double sa katong kwarto na akong giabangan sauna, gated ang subdivision, naay security guard, inig gawas nako sa balay kay dili lapok ang musugat nako. in short, mas ayahay ako gipuy-an karon ug mas barato ako gasto kada bulan sa balay. ang akong gasto sa equity ug improvements, sayon ra kau mabawi within 5 years kung kwentahon ang ako na-save sa rent vs. amortization.

[cebu.opportunities]

@oh_juana,

daghan jud barato sa lapu2x, liloan, consolacion, talisay, minglanilla. good thing sa imo ky duol sa imo workplace imo napalit nga unit. sa imo nga case, much better mo palit.

for low-cost housing, okay ni for temporary stay lang. (aw, depende sad sa inyo goal. the materials used in low-cost housing are also low in cost and some of which does not lasts long. ang tendency ky mag-sige repair but if before construction, you've instructed the changes in materials used, okay ra pud. cash out lang.)

what's good in low-cost housing ky mas lenient sila with regards to revisions compared to those middle and high-end houses.
what I do not trust ky ang quality sa structure itself. di ba dali ma liki ang walls, nipis raba kaayo?, okay ba ang wirings, how many breakers provided over the foreseen electrical consumption, etc...

no problem with the low-cost lots, socialized lots and/or urban poor lots since ikaw nmn bahala patukod.

[DanielJ]

This is how banks/lenders compute your capacity to pay.
It is presumed that 30% of your monthly income or salary is the "excess" money you'll have.

To have a closer-to-reality computation, list down all your monthly expenses (personal basic needs, education, future baby, "wants", emergency fund and other financial obligations and deduct the result to your combined (husband and wife) income. You'll have an idea of how much monthly amortization are you capable of paying in case of availing a housing loan.

You summed it up nicely.

@TS, revisit your budget and see how much you are comfortable with. If you can afford it and won't be hard pressed to pay your monthly bills then go for it. I think you can go window shopping if you'll attend the Pag-ibig Housing Loan Seminar. There'll be probably be folks there who can recommend what house and lot or condo unit that you can buy.