Why is buying a home always a good choice? Let's see this one story.
An Ilonggo couple Sid and Sheena stay in a two-bedroom apartment in an well-off neighborhood in Molo, Iloilo.
For the past decade, they bore a five-year-old child named Chad, joined friends in community affairs, and enjoyed living in the vicinity just like their neighbors.
The Iloilo Esplanade is within reach from their house so they enjoyed walking on Saturdays.
For the past decade, they bore a five-year-old child named Chad, joined friends in community affairs, and enjoyed living in the vicinity just like their neighbors.
The Iloilo Esplanade is within reach from their house so they enjoyed walking on Saturdays.
There is a problem however. Sid and Sheena were borders. They rent their home from Ram who live nearby and who bought an apartment as an investment from his retirement benefits.
For the past ten years, Sid and Sheena treated Ram's apartment as their own home. They spent on improving it.
At the age of 70, Ram died. He does not have a son and he only has one brother Roy.
Two months after Ram's death, Sid and Sheena were given a thirty-day notice to vacate.
This is a predicament for Sid and Sheena. Both of them work in the nearby call center in Molo Supermart and they were able to manage their hectic schedules because they live nearby. There are no available apartments of the same kind minutes from the area. Their five-year-old son Chad is very sad because he will depart from his three buddies who plays basket with him every afternoon. When you're a tenant, you are vulnerable to the negative fate of the owner.
Because of speedy development of Iloilo City and Molo's strategic location, Han's and Sheena's home almost doubled in value for the past ten years.
The total amount that they have paid for renting the apartment has amounted to one million pesos. The apartment's current market value 10 years ago was also one million pesos.
While looking for a new place, Sid and Sheena, temporarily stayed in his brother's house in Villa, Iloilo City.
Sid' brother Eric, with his wife Lizzy, acquired a lot in Villa, Iloilo City ten years ago and built a small one-storey house through PAG-IBIG loan.
When Eric and Lizzy started living in the home, their house was very small compared to Han's and Sheena's apartment. The one-storey house was 45 minutes away from Iloilo City proper. Sid' and Sheena's apartment had a more favorable location and has a more comfortable lifestyle to offer.
Though they started small, Eric and Lizzy has paid off their PAG-IBIG mortgage in the past ten years. They also started improving their house further.
They now own a two-story furnished house equipped with three rooms, and a garden. And because they have the control in their own property, they were able to build a sari-sari store which earns well mainly from local tourists on the way to Villa Beach.
Now, lets summarize the lesson from this story and take not why it's best to own a home.
1. Properties generally increase in value because lots increase in value. The inflation rate in the Philippines in 4.0%. The average annual increase in lot prices in Iloilo City is higher than that. Having a property shields you from inflation.
2. You can introduce money-generating developments.
3. You can improve your home to enjoy it. At the same time, this improvements serve as your investment.
4. You'll cash-out for a place to stay any way. Better spend on acquiring your own asset.
5. Renting is always temporary. Your domain will always be limited.
6. Aim for the time that you will no longer be paying anything to have a shelter.
7. Your good health is not forever. You will have to retire some day. Make sure you have a home to stay and perhaps another to collect rent from.
8. You can start small. If you have limited budget, start with a lot. Then piece by piece, build improvements that you can afford. You will find yourself surprised in your dream home some day.
9. PAG-IBIG loan is a favorable privilege for Filipinos. Grab it. Just make sure you can pay. Any way, their terms are affordable and tailored for typical Filipinos.
10. Buying a home will rentail sacrifices. Still, allocate some part of your income for it. It will be worth it .
This article about buying a home is brought to you by HomeInIloilo.com. For your residence needs in Iloilo City, trust HomeInIloilo.com. Some ideas shared in this article are taken from A Survival Guide for Buying a Home by Sid Davies.
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