Renting vs Owning in Manila

Amid touring properties to see what 2-3 million pesos can get you in the Metro, I asked ChatGPT: Can someone just rent for a lifetime instead of buying a home? It said:

Yes, someone can absolutely rent for a lifetime instead of buying a home. While homeownership is often considered the traditional path to long-term financial security, renting for life can be a strategic choice depending on a person’s financial situation, lifestyle preferences, and investment strategy.

Key Reasons Why Someone Might Rent for Life

 1. Flexibility – Renting allows you to move easily for work, lifestyle changes, or personal preferences without the burden of selling a home.

 2. Lower Upfront Costs – Homeownership requires a significant down payment, closing costs, and maintenance expenses, whereas renting generally has lower upfront costs.

 3. Avoiding Maintenance and Repairs – Renters don’t have to worry about major home repairs, property taxes, or fluctuating market conditions.

 4. Investment Alternative – Instead of tying up money in a home, lifetime renters can invest in stocks, bonds, or other assets that might generate higher returns.

 5. Market Risk Avoidance – Real estate markets fluctuate, and renting protects against depreciation and market downturns.

 6. Lifestyle Preferences – Some people prefer to live in urban centers where homeownership may be prohibitively expensive or where renting offers better amenities.

 7. Job or Life Uncertainty – If someone’s career requires frequent relocation, or if they don’t want long-term ties to one place, renting makes more sense.

 8. Liquidity and Diversification – Buying a home concentrates a large portion of wealth into one asset, whereas renting allows for greater financial diversification.

Financial Considerations

 • Renting isn’t always cheaper, but depending on the market, it might be more cost-effective over the long term.

 • Rent can increase over time, whereas a fixed-rate mortgage provides stability.

 • Homeownership builds equity, but renting can still be financially viable if investments outperform real estate appreciation.

Who Does Lifetime Renting Work Best For?

 • Digital nomads or frequent movers

 • High-income earners in expensive cities where buying isn’t cost-effective

 • People who prioritize liquidity over property investment

 • Individuals who don’t want the responsibility of homeownership

Bottom Line

Renting for life is a valid choice, and for some, it’s the smarter financial decision. However, it requires disciplined financial planning to ensure that savings and investments can sustain rent costs in retirement.

*END*

All of these make sense. I’ve seen my parents and friends do it. Renting’s practical if your life is here. A budget of 2-3M could only get you a studio condo in older buildings. House and lot perhaps through foreclosed properties which would need repair, and with risks involved. We’ve committed to a property at the pre-selling stage but unfortunately, we ended up backing out because the salesperson wasn’t true to her word and the turnover date is no longer assured (might be four more years instead of just one).

Also, I don’t want to be tied to a mortgage for so long I won’t be able to live a comfortable life while accommodating needs and wants. But looking through options that won’t require using a loan or taking a little, I’m not happy with what’s available.

Either I come to be at peace with the fact that renting is for me, or save more until a home I really like comes along. It’s not about being in my late thirties and being pressured to own something. For now, working from home is a blessing that opens more options for me and my husband. But for the things we love doing at the moment and the people I want to stay close to, I’m staying here.