I've always thought its better to own your home rather than rent. Now i realize the answer is not completely black and white and it really depends on a lot of factors. Here is a mathematical approach to buying vs renting a home. What do you think?

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Kung naghanap ka ng bahay na matitirahan mo,

mas okay bang bumili o kaya mag-rent na lang ng bahay?

Siguro karamihan sa atin iniisip natin na mas okay ang bumili ng bahay.

Pero compute nga natin to at tignan talaga natin

kung mas okay pa ba bumili ng bahay

kumpara sa pagre-rent sa mga presyo ng mga bahay.

So ang ginawa ko, tinignan ko ang presyo ng mga bahay ngayon

sa may Valle Verde.

Sa Valle Verde ngayon, ang isang 400 square meter na bahay

ay umaabot ng mga P150,000,000 pesos on average.

Pero kung magre-rent ka, tinignan ko rin

kung magkano magpag-rent ng mga 400 square meter na bahay,

umaabot lang siya ng mga average of about P150,000 pesos a month.

Okay, so ikumpara natin ito.

So let's say meron kang P150,000,000 pesos.

Ngayon, bumili ka ng bahay.

Ibig sabihin nun, wala ka ng kinikitang income

from the P150,000,000 pesos

dahil nakatira ka dito sa bahay na ito

kumpara kung nagre-rent ka na lang

at i-invest mo na lang yung P150,000,000 pesos mo.

Okay, tingnan nga natin yung exact computations na ito.

Let's say, for example,

nagbigay ka ng P150,000,000 pesos para sa isang bahay.

Ibig sabihin nun, hindi ka na magbabayad ng rent.

Pero ano ba yung nawawala sa'yo?

Ang nawawala sa'yo is your passive income

or income from your asset,

which is the P150,000,000 pesos.

Ngayon, kung nagre-rent ka na lang

for P150,000,000 pesos,

buwan-buwan, magkano ang income

makukuha mo sa P150,000,000 pesos mo

pag in-invest mo na lang yung pera ngayon.

So at P150,000,000 pesos,

you could get about 6% annually on your money.

And that's conservative.

At 6% annually,

lumalabas siya ng P9,000,000 pesos every year.

Ibig sabihin yan, passive income yan,

yung pera mo nagtatrabaho para sa'yo.

Kung dinivide mo yan by 12 months,

that's P750,000,000 pesos every month.

Ngayon nakikita mo na kung bakit

mas okay mag-renta, no?

Kasi ang gagawin mo dito is

you make P750,000,000 pesos a month,

passive income.

You don't have to work for it, ha?

Tapos magre-rent ka for P150,000,000 pesos a month,

may matitira ka pang P600,000,000 pesos buwan-buwan.

So in this case, it's actually better to rent

than to buy your own house.

So let's give another scenario.

What if you only have, let's say, P45,000,000 pesos

but you want to buy a P150,000,000 peso home?

You'll have to mortgage the balance of the P150,000,000 pesos

which is P105,000,000 pesos.

Now, let's say the mortgage is going to be 30 years

at 6% interest rate.

Ang lalabas dito ay magbabayad ka ng P630,000 pesos every month.

So nawalan ka na ng P45,000,000 pesos

kasi yun ang pa-down payment mo.

Tapos maglalabas ka pa ng P630,000 pesos every month

just to be able to live in this 400-square-meter home

in Valle Verde.

Parang hindi praktikal, di ba?

Kasi kung ininvest mo na lang yung P45,000,000 pesos mo

at a 6% interest rate,

you'll get an annual return of P2.7 million pesos.

Per month, lumalabas siya ng P225,000 pesos every month.

Ibig sabihin nun,

meron ka pang savings na P75,000 pesos

after you rent for P150,000 pesos in that same house.

Kasi ang isang pinakamalaking problema

ng real estate prices right now for sale

is sobrang taasan ng presyo ngayon

na hindi na realistic yung pagbili ng bahay.

And it actually makes more sense if you have the money

to just rent a home and invest your money in other things.

Now, when does it make sense to buy a house

compared to renting a house?

It will only make sense

if the monthly rental rate is close to your monthly mortgage rate.

Kung halos magkalapit na sila

or konti na lang yung difference,

it actually will make sense na

to buy a home versus renting it.

Dahil kung pareho na yung rental rate mo sa mortgage rate mo,

ang pagkakaiba na lang nila

ay dahil ikaw na yung may-ari ng bahay na yun,

pagbinenta mo siya, nag-a-appreciate siya sa value

at kumikita ka sa value appreciation nung asset mo.

And that is the only time that it actually makes sense

to buy a home versus renting a home.

Kaya bago ka mag-desisyon kung bibili ka ng bahay

o magre-renta ka ng bahay,

importante na i-compute mo talaga yung dalawang yun

at i-kumpara mo sila

para malaman mo talaga

kung ano ang pinakamagandang desisyon para sa'yo.

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Salamat sa inyong lahat.

Ito si Kristan.

Magkita tayo ulit sa aking susunod na video.