Buying your own house or car is one of the most defining moments for any adult, a testament that you already made it in life. The moment you start earning money, buying a house-and-lot, or a car becomes the obvious end goal.
After years of grinding in your day job while diligently saving bonuses or extra income, you are now a step closer toward a roof over your head or a set of wheels to get you around. But since both cost a great deal of money, it’s likely that you have to prioritize one over the other. Should you buy a car, specifically an e-vehicle, first over a house-and-lot? Or does it make better sense to have a house-and-lot first, then a car?
If you are experiencing the same crossroads, here are some of the pros and cons of each decision, taking into consideration some important things.
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Car first
Pros:
- The traffic problem is costing the economy roughly P3.5 billion daily, according to the Japan International Cooperation Agency (JICA). You can manage your routes and trips, even avoid traffic altogether, if you drive a car to your destination.
- Given the current pandemic landscape, taking public transport every day would expose you to more risks of getting the coronavirus. If you’re in the safety and comfort of your own vehicle, you can also be free from the hassle of transport restrictions imposed on all public utility vehicles.
Cons: - Cars—or any vehicle for that matter—are depreciating assets. A Forbes article stated that “depreciation is a motorist’s greatest expense” with the average vehicle dropping 49.6 of its original value after five years.
- Rising gas prices may not be a problem with e-cars, but the price of the car itself is hefty. Aside from the cost of the car, vehicle ownership incurs many other added fees like insurance, vehicle registration, driver’s license application or renewal, or settling a traffic rule violation.
House-and-lot first
Pros:
- One of the advantages of owning a house-and-lot is appreciation, with property prices rising even in the midst of economic doldrums. According to Joey Roi Bondoc, associate director and head of research at Colliers International, “improving business and consumer confidence will likely spill over to the residential market, with rents and prices recovering in the next 12 months. These indicators bode well for the residential market.”
- Buying a house-and-lot can help you strengthen your credit over time, as long as you are consistently making your monthly payments. As your credit score improves, it will become easier to secure other forms of financing, for example, if you decide to purchase a new car or finance an investment property.
- According to Lamudi website’s 2020 Real Estate Market Review, when it comes to buying, Houses have the most searches (51%) followed by Land (23%), and Condominiums (18%). This reflects the prevailing home and real estate preferences among Filipinos.
Cons:
- Having the discipline to keep up with monthly mortgage payments is among the primary responsibilities of home ownership. Therefore, you must never forget to allot a significant portion of income to your mortgage payments. Failure to do so would complicate, if not hinder, your journey toward home ownership.
- According to Philippine law, a property inheritance like a house-and-lot will be part of your estate, but your heirs must first pay a significant amount of estate tax. The good news is that you can simply get an insurance amounting to your possible estate tax, assign an irrevocable beneficiary, and the claims will be tax-free.
- Owning a home is a serious financial commitment, as buying a house or a property in the Philippines can be quite expensive. From monthly payments, to the initial downpayment, loan tenure and interest rate, there are a lot of things to consider before committing to a house-and-lot purchase.
Should you find yourself ready to settle down in a house-and-lot nestled within a master-planned community that is near the essentials of life, consider Lumina Homes, the affordable housing arm of Vista Land & Lifescapes, Inc.—one of the country’s leading integrated property developers.
Your ultimate dream home
Established in 2012 with flagship project in Sto. Tomas, Batangas, Lumina Homes offers quality, affordable house and lot properties in over 50 key locations nationwide; including Rizal, Bulacan, Pampanga, Bataan, Zambales, Nueva Ecija, Tarlac, Pangasinan, La Union, Cagayan, Isabela, Cavite, Batangas, Laguna, Quezon, Camarines Norte, Albay, Sorsogon, Iloilo, Capiz, Cebu, Negros Occidental, Agusan del Norte, Zamboanga del Sur, Bukidnon, Misamis Occidental, Davao del Norte, Davao del Sur, and South Cotabato.
Lumina Homes’ master-planned communities are located near signature lifestyle brands that include Vista Mall, AllHome, Coffee Project, MEX and more. It also boasts of well-thought and functional amenities that can be found in eSpacio, its own amenity center that hosts a multi-purpose hall, mini gardens and playground, jogging path, and shuttle terminal; and new features like community center and “Tambayan ni Juan.”
Lumina Homes continuously pushes for digital real-estate solutions like virtual home tours and subdivision walkthroughs, online reservation, online appointment booking, and online payment options through digital wallets and digital banking in partnership with national bank players.
For more information, check out Lumina Homes on Facebook at @luminahomesofficial or visit the website https://www.lumina.com.ph.