Buying vs Renting a Condo in Manila: The Pros and Cons
The age-old debate on buying or renting a condo in Manila persists up to this day, and we understand that it’s primarily due to the need to make the right decision. After all, either option requires one to invest their hard-earned money, which no one would want to regret. So, if you’re on the fence about renting or buying a condo in Manila, Anchor Land is here to help you find which of the two will suit your needs best.
The Pros of Renting vs Buying a Condo in Manila
Renting |
Buying |
|---|---|
| Easier to move in | Transform the space as you please |
| No property tax to take care of | No need to deal with increase in rent |
| Moving out is easier | Gain an asset that grows in value |
For any individual working in any of Metro Manila’s central business districts like Makati, BGC, or Ortigas, surely the day-to-day toll of dealing with the horrendous rush hour traffic has worn them down at least once in this lifetime. That being said, moving closer to any of the capital’s busiest cities is a viable solution, which has in effect given rise to condominium developments.
The comforts and conveniences that come with condo living cannot be denied, so the next step in making the move a reality is deciding whether to rent or buy a condo in Manila.
With renting, you get advantages that make moving to a condo somewhat more seamless when compared to buying. Apart from the hassle-free experience of simply coming in and out as you please, especially for fully-furnished units, you won’t have to worry about paying any property taxes as well.
As for buying, the advantages can be much more impactful, which basically means that it’s a bigger decision to make. Condo ownership enables you to design and decorate the unit as you please and you won’t have to worry about rent increasing. And ultimately, you get to own an asset that grows in value, which makes condo ownership an investment that can potentially yield huge returns later on.
The Cons of Renting vs Buying a Condo in Manila
Renting |
Buying |
|---|---|
| Rent increases over time | Required a large sum to obtain |
| Deal with lease deadlines | Selling can take a while |
| No equity to gain over time | Deal with costs to maintain |
As for the disadvantages of renting and buying, you will likely be looking at the costs that come with either option.
Per Lamudi.com, the average monthly cost to rent a condo in Manila hovers anywhere between 12.12 USD per square meter and 18.29 USD per square meter, which is around 610 to 920 PHP per square meter per month.
While per Investasian.com, the average price of a condo in Manila is around 2600 USD per square meter, which roughly amounts to around 130,815 PHP per square meter.
Do consider that the average size of a condo unit in Manila measures less than 50 square meters, so after you do the math, given its asking price (which will oft require a 20% down payment), one obvious downside of buying a condo can be the overall cost to ownership. However, unlike renting, condo ownership is an investment.
So, if you’re keen on penetrating the real estate scene, to buy a condo in Manila as your place of residence also serves as investing in a property that you get to utilize now and gain ROI later on should you decide to sell or rent it out to a tenant.
What to Factor in: Renting vs Buying a Condo
The thing to weigh here is this: will you choose to spend a significant sum that can potentially generate higher returns later on, or spend a somewhat considerable amount of cash month on month without any financial gain over time?
Factor in how long will you need to live in this location to find out if either option is worth it. Most condominium developments are already located at a prime address, thus keeping their value at a premium, so carefully consider the pros and cons when deciding.
Conclusively, renting a condo is relatively more affordable, and when your proximity to key locations is no longer necessary, moving out can be done without any hassle. That being said, you won’t have control over annual rent increases, are under contract with a landlord, and cannot build equity.
On the one hand, buying a condo in Manila, while it can be tad costlier as opposed to renting, enables you to live closer to the places that play an important role in your life as you invest in a worthwhile property. So, it helps to be certain that you’re in for the long haul to secure your investment.
Consider which option presents you with more pros than cons, because at the end of the day, condo living can greatly improve the quality of your life.
Anchor Land, the luxury property developer in the Philippines, is here to help you find the right condo that meets your lifestyle needs – whether you choose to rent or buy.
Don’t hesitate to send us a message, so we can help you decide.
