Adulting 101: To Rent or Buy a Property?

I've been living independently for 12 years, and I have now reached a point in my life where I'm thinking about whether renting a place is more feasible than owning one. I live in a small 2-bedroom in the heart of the city for 8 years now, paying $250 monthly rent (plus utilities), and while I love my humble abode, I keep thinking if I should just apply for a housing loan and pay a monthly mortgage instead. My Mom offered to finance a 2-story townhouse 3 years ago (when we still had money after my dad's retirement) but I declined because of the location. Now I'm regretting my decision. Haha! Read more...

OOTD before going out of my apartment!

I know buying a home might be exciting, but it's also important to consider a lot of factors before making a decision especially if you can't pay in full. Here are 5 important ones!

1. Know your budget. Assess your finances and know your debt-to-income ratio. You must have a consistent & concrete payment plan because it would be heartbreaking to just lose your property in the end just because you can't pay for it anymore. One thing that's holding me back right now is the amount of money I have to shell out for downpayment, mortgage, moving costs, renovation, furniture, repair & maintenance, taxes, etc. versus just paying our monthly rent plus utilities. I'm also considering the length of time I should pay the monthly mortgage before fully owning the property. It's best if your first estimate your monthly payments and assess if you could consistently follow through. 

2. Location. If you see yourself rooted in a certain place for years to come, then you might just be ready to purchase your own home. If you're someone who wants to travel or hop from one place to another, or if you're planning to work/live abroad, then renting might be the better option for you. Assess your lifestyle and it could help you decide!

3. Timing. You should also ask yourself, "is it the right time to purchase a home?" According to an article by Reuters, the pandemic has hugely affected the real estate market. Prices of properties are up by more than 10% because of an increase in demand! Wow. More people are staying home, so more people are looking for a permanent place to stay in. So don't forget to do some research and maybe talk to trusted real estate agents if it's the best time to buy a property so you don't overspend.

4.  Emotional and Personal State. If you're not stable financially or you have personal problems (health, family, etc) then it's best to hold off your plan for a while until you get it all figured out. It's a lifelong commitment so you must be all in 100%! 

5. Interior Preference. Based on my own experience, you could only do so much if you're renting an apartment, house, or condominium. You can't easily do renovations or changes because after all, you don't own the place. So if you have a dream place or certain aesthetic in mind, then it's best to have your own place so you have the freedom to create your own space. :)  

That's it for now! Will update you again when I finally make a decision. But for now, with my financial situation and nomadic lifestyle, I would have to stick with my beloved apartment until I finally put everything in place. Still can't wait to have a place to call my own-- someday! :)