Why do you want to work overseas? To earn more money? To provide a better future for your family? To help you pay the bills? OFWs will come up with hundreds of reasons on why they want to go overseas, but surely, you will find a common answer. One of them is to buy a house they can call their home.
The idea of owning a house is exciting. It also encourages you to work harder because of the goal you want to achieve. Apparently, owning a house is not that simple. You have to consider other options such as renting as you save for this house goal.
The question now is this: when should you rent first and when is the right time to buy a house? Read on to find out.
Rent if ….
- The rent is low and you can afford to pay for it every month.
- You still don’t have sufficient budget to buy your own house and cover all the expenses attached to it such as additional repair or renovation and buying furniture.
- You don’t have additional source of income that could help cover the expenses. Check out this post to see some of the side jobs you can do.
- There is no plan of retiring in that particular area and you can’t even commit to staying there for the next 10 years. This means you set a deadline for yourself and your family that you will only stay there for a maximum of five years, which is enough time to help you save for a new and own home.
- The place where your family in the Philippines is located is conveniently situated near establishments like school, market, and hospital. Again, the intention is only to live in that particular area for a short-term while saving up for your dream home.
- There is an intent to relocate and retire in the province.
- The responsible choice is to wait for a few more years because the cost of owning a house could leave you bankrupt, thereby jeopardizing the future of your family.
Buy if ….
- You have sufficient income stream that will cover the cost and expenses of buying a home. This means aside from the purchase price of the house and lot, you can also afford to pay new furnishings, appliances, and some minor repairs in your new home.
- You can afford and keep up with monthly amortization. Take note that this must be paid religiously every month, otherwise there is a risk that the property might be foreclosed and taken away from you.
- There is willingness to pay for real property taxes every year.
- There is an intention to live in a particular area for good.
- You and your family want to be in control of the home, with no landlord limiting you of what you can do in the house, which includes repainting the walls.
- Privacy and the comfort of your family is among the biggest considerations.
Here’s a tip:
Surely, you want a place you can call your own. To help you save money for your dream home, anticipate the costs that come with owning a new home. Add monthly amortization fee, insurance, property tax, and cost of maintenance, and then set aside an amount equivalent to or at least close to it every month. If possible, open an account specifically for it so you don’t have to use it. This gives you enough time to save up for the house while reducing the risk of availing for a Home Loan.