Why rent? When you can own

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why-rent-when-you-can-ownHi there, Would you ask yourself “Hows your way of living?”, “How was your home?” “Am I renting or I owned a house? You may wonder why youre asking those questions to yourself, it’s because for one reason. To know if its really significant owning a property than renting. Most of new couple’s nowadays preferred to rent apartments, condo’s or houses for their daily living, without knowing their expenses if summed up in a long run would be enough to build a low end home you can call it your own.

I will show you an example computation or breakdown of expenses if you’re renting an apartment, condo or a house vs. or compared with the cost of building a low end livable home.

For the list number one. Lets just say range rental of apartment would be 15 k-25 k per month, in Philippine Peso, Depending on the furnishing of the apartment. We will use the mid range price per month of 20 k. In a long run with the span of 3 years if you sum up your rental expenses of your home would be equivalent of Php 720,000. Take note that most of for rent apartments floor area are studio types, which means a very small area just the primary spaces you need for living like the living area, dining, little kitchen, toilet and a sleeping quarter maybe other apartment have 1-2 bedrooms if they don’t fall in a studio type setup. To give you the figure area it would be approximately 35-60 square meter for apartments.

For the list number two, Common monthly rental of condominium units are depending to it’s size. Most of condo’s are typically studio type and the price would be much expensive than apartments aside from monthly add-on maintenance fees of condominiums and parking. Condo rentals starts a 15 k or even more, “excluded” the additional condo management fees and parking fees. To give you a range it would be 15 k-50 k monthly rate in Philippine Peso, depending on how luxurious your condo is.

So we will get  the mid price of 32 k to set as our example rental for condominiums. As what I have said lately that like apartment’s,  condo’s are more typically studio type than apartments. You will seldom see partitioned condo units unless it is customized or originally by its design. Floor area of condo’s would range from 25-50 square meter. In a 3 years span of rental you’ll arrive with Php 1,152,000. Wow! I cant imagine you’ve spent that for only renting?

For the list number three, House rentals, single detached houses range from 15k-30k also depends on size. We will get again its mid price of 22 k monthly rental of a house in Philippine Peso. So in a span of 3 years of rental you will arrive Php 792,000.

So now, do you have an idea of how much it would cost to built a low end house? Most of subdivision units has a building footprint area of their houses of 36 square meter built on a 100 square meter lot area, already provided with the provision of setbacks. Let’s just say you will built a much higher building floor area of a low end house. We will set an example of 40 square meter building footprint and lets just assumed that you have already a lot allocated to built your low end home. Maybe it is a family inherited lot or whatever available lot there for you.

Here as follows are the per square meter prices on valuation of structure’s as per rule of thumb use by architects, builders, contractors and professional’s. Also inherited by OBO on valuations of structures in determing fees imposed in applying building permits.

Livable Finish: 15,000/square meter
Economical Finish: 22,000/ square meter
Elegant Finish: 26,000 – 30,000/ square meter.

Note: Per square meter rough estimate or rule of thumb includes material and labor of building residential structure.

So now lets compute on how much it would cost to built a low end house. So in the low end house, it falls in the livable finish which means just structural features of the house, but a livable one it has rough finishes has rough finish doors and windows serves as enclosure of the house to be desirably livable. From above set values, we set to calculate a 40 square meter low end house. So we will get the product of 40 square meter and Php 15,000. The answer would be Php 600,000.

Now you could visualize how much would your rental can be? You can build a low end house in just Php 600,000? and the floor area maybe higher than your existing rented apartments or condo’s right now. It would have no furnishings yet but you can call it a home of your own.

Disclaimer: Calculated estimated fees, don’t apply in all locations. In this topic estimated example we are specifically referring Cebu City area, other places than Cebu may vary rental prices. We only give range prices to give you ideas on how much it could be as estimate for future references.

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