Why rent when you can own a house

Owning a house is definitely more practical than renting, especially long-term, as real property values appreciate over time and offers a sense of financial security.

However, it entails challenges that must be considered before making the shift from being a mere tenant to becoming your own landlord: paying down payment and monthly amortization. 

Personal finance expert Randell Tiongson boils down the issue to this: your readiness and financial situation.

"It's dependent on the situation and timing. Marami ang umuupa pero later on magsi-shift to owning a house, kasi ready na sila," Tiongson said in an interview with GMA News Online. "It's an issue of readiness as well. Dapat stable ang trabaho mo and alam mo na may income kang papasok na regular."

Tiongson highlighted three things to consider before buying a house.

On renting, Tiongson said the advantages are short-term.

"Normally, 'yung renting temporary, eh. Halimbawa, kung sa trabaho mo palipat-lipat ka ng location, o nagsisimula ka pa lang ... If that's the case, it makes sense na mag-rent ka muna," Tiongson said.

"At the end of the day, mas maganda pa rin magkaroon ka ng bahay pero the question is kaya mo na ba hulugan 'yan? Gusto mo na ba 'yang napili mo? Kasi kung nag-down ka na, nakakapag-hulog ka na, pero biglang nagbago isip mo or mas magigipit ka pala, e mas maganda na umupa ka na lang muna," he added.

For young professionals, Tiongson said save early to be able to buy a house. Having enough savings makes it easier and less costly to buy a house when the time comes. Tiongson noted.

"Save as much as you can so you can have a higher down payment," he said, emphasizing that a higher down payment  translates to lesser monthly amortization and shorter payment period

"Ang tip na lang dito tataasan mo 'yung down payment mo para hindi masyadong mabigat 'yung monthly amortization mo. Instead of the usual 20 percent, baka pwede mong gawing 30 or 35 percent para mas-i-igsi rin 'yung pagbabayad mo ng hulog," Tiongson said. — VDS, GMA News