Picture
One of the most common dilemma for a first time property owner is whether to sell or lease their first house, apartment or condo unit.  This usually happens when for employees who need to relocate due to circumstances in their careers. They might have been offered with a job that pays better but is located elsewhere. Another circumstance would be for newly wed couples who decided to purchase their dream home.  One of both of the couples may have already purchased a property before they got married.
Picture
So the basic question comes into play. Should we lease or sell the property?

It really depends on what you are planning to do.  For an instance, you have decided to settle down by purchase a much bigger home.  

Now as an example, you have a Php 1.2M Studio Condo unit with a mortgage of Php 300k and you decided to purchase a townhouse with a price of Php2.5M and a required downpayment of Php 500k.
Scenario 1: You decided to sell the property.

In this scenario, you sold the property for Php 1.2M and paid the remaining mortgage of Php 300k. This gives you a net of Php 900k that you can add up to pay for the downpayment of the townhouse.  You will then have a new mortgage of Php 1.6M. 

Townhouse Value: Php 2.5M
Total Mortgage:  Php 1.6M

Scenario 2: You decided to lease out your property for about Php 15,000.

In the second scenario, you have two properties with a total value of Php 3.7M (Php 1.2M and Php 2.5M respectively). You paid for the Php 500k downpayment and took a mortgage of Php 2M. This brings your total mortgage debt to Php 2.3M. However, the monthly rental income of Php 15,000 can help you in paying your total mortgage 

Condominium Value: Php 1.2M
Townhouse Value: Php 2.5M 
Total Property Value: Php 3.7M
Total Mortgage:  Php 2.3M
Total Rental Income: Php 180,000/annum (Php 15,000 per month)

Picture

At first look, you will notice that Scenario 1 is better because you only have a mortgage of Php 1.6M versus Scenario 2 where you now have an outstanding mortgage of Php 2.3M. But let us also consider a long term approach.

Let’s assume that the value of the properties increased by 10% per annum. See the new future values after 10 years. Assuming that you have saved all the rental income then there is a significant difference in the net worth.
Scenario 1: Sell the property 

Townhouse Value: Php 6.5M
Total Mortgage:  Php 1.47M

Total Net Worth Increase: Php 5,030,000

Scenario 2: Lease the property 

Condominium Value: Php 3.1M
Townhouse Value: Php 6.5M 
Total Property Value: Php 8.6M
Total Mortgage:  Php 2.1M
Total Rental Income: Php 180,000/annum (Php 15,000 per month)
Total Rental Income Earned: Php 1.8M

Total Net Worth Increase: Php 9,300,000

Both options can be taken and it is just a matter of preference depending on the owner. Scenario 2 presents a much bigger risk by taking an extra mortgage versus Scenario 1 which is just replacing the initial mortgage with a bigger one. As the property owner it would best to understand the type of risks that you are willing to take and future goals that you are aiming for. If you are looking to sell in the future then maybe leasing your property is the best option. If the budget is tight and you cannot afford to take out a second mortgage then probably selling is the way to go. It all depends on what works best for you.

Picture
The Author
Joel Dennis has a weakness for chocolate. Chocolate cake, choco bar, choco pretzels, chocolate drink, either hot or cold, you name it as long as its chocolate. Choco... choco...choco.... Even Chocobo.. hahaha.

Email me at: Broker@JoelDennisMuyco.com

 


Comments

09/01/2016 1:52pm

It's a hard decision. What is your choice? Tell us about it, please.

Reply

Some truly wonderful work on behalf of the owner of this internet site , perfectly great articles .

Reply

I went over this website and I believe you have a lot of wonderful information, saved to my bookmarks

Reply
09/08/2016 3:36pm

Wow! This is the perfect blog I am looking for because I am still confused on what will I do with my property. It gives I like the way you elaborated the scenarios which gives the owner an idea on what will they do with their property. This informative blog helps many readers with their decision-making regarding the situation. Great articles and will look forward for more!

Reply
09/13/2016 9:08pm

I truly favor to reading your post. Thank you a lot for taking the time for you to share such a nice info.

Reply
09/27/2016 9:47pm

Existing without the answers to the difficulties you’ve sorted out through this guide is a critical case, as well as the kind which could have badly affected my entire career if I had not discovered your web site.

Reply

This content is justified regardless of everybody's consideration. In what capacity would I be able to discover more?

Reply
10/12/2016 5:48pm

Thanks.

Reply
10/14/2016 3:25am

excellent post

Reply
10/14/2016 4:14pm

Your method of explaining the whole thing in this post is in fact pleasant, every one be capable of effortlessly be aware of it, Thanks a lot.

Reply
10/21/2016 7:44pm

Interesting story you have shared it is useful and getting a lot of new thing its really nice and making best thing.

Reply
10/26/2016 5:48pm

Time management will help you win more listings and clients in commercial real estate agency today. Here are some tips to help agents with their time in client contact and listing management.

Reply

As of now it appears as though WordPress is the favored blogging stage accessible right at this point. (from what I've perused) Is that what you're utilizing on your site? Incredible post anyway I was thinking about whether you could compose a litte more on this subject?

Reply
10/28/2016 8:07pm

Nice to read that such training centres are the place to be, because in reality, most students do not fit the format of education. Especially now in the digital era, schools need fresh approaches for education. Thanks for the article.

Reply
11/03/2016 3:11am

excellent blog keep it up

Reply
11/05/2016 12:25am

YouTube is world's greatest video sharing site, nobody can overcome it. Each one transfer motion pictures at YouTube after that acquire insert code and post anyplace.

Reply
11/12/2016 2:28pm

For this reason, it is necessary that property owners consider certain things before hiring a manager. There are some attributes which are a must for any property manager.

Reply

Thanks for sharing this information and I’ll love to read your next post too.

Reply

The post I really very interesting and useful the scenario' which are discussed here are really very important. The author has united the important factors which are necessary to sale out a house.

Reply
11/14/2016 12:57pm

Leasing your property is a good option rather than selling. But it depends whats best fit for you.

Reply
11/14/2016 1:00pm

It depends on owner's choice..

Reply
11/15/2016 4:28pm

http://arkanherbal.com/obat-salpingitis/
http://arkanherbal.com/cara-mengobati-prostatitis/
http://arkanherbal.com/obat-aritmia-jantung/
http://arkanherbal.com/obat-patah-tulang-kaki/
http://arkanherbal.com/obat-cairan-di-paru-paru/
http://arkanherbal.com/cara-mengobati-mata-konjungtivitis/
http://arkanherbal.com/jenis-jenis-benjolan-di-payudara/
http://arkanherbal.com/cara-mengobati-kanker-payudara/
http://arkanherbal.com/cara-mengobati-mata-keruh/
http://arkanherbal.com/cara-mengobati-tumor-ovarium/
http://arkanherbal.com/obat-turun-berok/
http://arkanherbal.com/cara-mengobati-kista-ginjal/
http://arkanherbal.com/obat-infeksi-dinding-rahim/
http://arkanherbal.com/obat-paru-paru-bocor/
http://arkanherbal.com/obat-benjolan-di-dinding-rahim/
http://arkanherbal.com/cara-mengobati-radang-testis/
http://arkanherbal.com/cara-mengobati-kram-usus/
http://arkanherbal.com/obat-penyakit-mata-glaukoma/
http://arkanherbal.com/obat-hipertiroid/
http://arkanherbal.com/cara-mengobati-rahim-kering/
http://arkanherbal.com/agen-eye-care-softgel-jakarta/
http://arkanherbal.com/agen-slimming-capsule-jakarta/
http://arkanherbal.com/agen-vig-power-capsule-jakarta/
http://arkanherbal.com/agen-eye-care-softgel-bekasi/
http://arkanherbal.com/obat-benjolan-di-testis/
http://arkanherbal.com/agen-eye-care-softgel-tangerang/
http://arkanherbal.com/agen-vig-power-capsule-tangerang/
http://arkanherbal.com/agen-slimming-capsule-tangerang/
http://arkanherbal.com/agen-vig-power-capsule-bandung/
http://arkanherbal.com/agen-slimming-capsule-bandung/
http://arkanherbal.com/agen-slimming-capsule-bandung/
http://arkanherbal.com/agen-eye-care-softgel-surabaya/
http://arkanherbal.com/agen-slimming-capsule-surabaya/
http://arkanherbal.com/agen-vig-power-capsule-surabaya/
http://arkanherbal.com/agen-eye-care-softgel-semarang/
http://arkanherbal.com/agen-vig-power-capsule-semarang/
http://arkanherbal.com/obat-mata-juling/
http://arkanherbal.com/obat-ablasio-retina/
http://arkanherbal.com/obat-degenerasi-makula/
http://arkanherbal.com/obat-buta-warna/
http://arkanherbal.com/cara-mengeluarkan-dahak-di-tenggorokan/
http://arkanherbal.com/obat-saraf-mata-yang-rusak/
http://arkanherbal.com/obat-kanker-usus-12-jari/
http://arkanherbal.com/cara-mengobati-gondok-beracun/
http://arkanherbal.com/cara-mengobati-benjolan-di-miss-v/
http://arkanherbal.com/obat-glaukoma/
http://arkanherbal.com/obat-paru-paru-basah/
http://arkanherbal.com/obat-hernia/
http://arkanherbal.com/cara-mengobati-retina-mata-lepas/
http://arkanherbal.com/obat-saraf-mata-robek/
http://arkanherbal.com/cara-mengobati-mata-buram/
http://arkanherbal.com/cara-mengobati-buta-warna/
http://arkanherbal.com/obat-gondok-beracun/
http://arkanherbal.com/obat-flek-paru-paru/
http://arkanherbal.com/breast-care-capsule/
http://arkanherbal.com/lycopene-softgel/
http://arkanherbal.com/ganoderma-plus-capsule/
http://arkanherbal.com/obat-amandel/
http://arkanherbal.com/obat-kencing-batu/
http://arkanherbal.com/obat-katarak/
http://arkanherbal.com/obat-eksim-kering/
http://arkanherbal.com/obat-kelenjar-tiroid/
http://arkanherbal.com/obat-benjolan-di-leher/
http://arkanherbal.com/obat-kencing-manis-kering/
http://arkanherbal.com/obat-diabetes-basah/
http://arkanherbal.com/cara-mengobati-penyakit-flek-paru-paru/
http://arkanherbal.com/obat-lemak-darah-tinggi/
http://arkanherbal.com/cara-mengobati-ablasio-retina/
http://arkanherbal.com/cordyceps-plus-capsule/
http://arkanherbal.com/blueberry-concentrate/
http://arkanherbal.com/deep-sea-fish-oil-softgel/
http://arkanherbal.com/triflex-capsule/
http://arkanherbal.com/lecithin-softgel/
http://arkanherbal.com/gastric-health-tablet/
http://arkanherbal.com/green-world-super-nutrition-nutrimax/
http://arkanherbal.com/cara-mengobati-retina-rusak/
http://arkanherbal.com/cara-mengobati-wasir/
http://arkanherbal.com/cara-mengobati-mata-plus/
http://arkanherbal.com/cara-mengobati-penyakit-gondok/
http://arkanherbal.com/obat-penyakit-batu-empedu/
http://arkanherbal.com/cara-mengobati-mata-berkabut/
http://arkanherbal.com/obat-infeksi-saluran-kemih/

Reply
11/18/2016 3:01pm

http://arkanherbal.com/obat-penyakit-kanker-otak/
http://arkanherbal.com/obat-kanker-serviks/
http://arkanherbal.com/obat-salpingitis/
http://arkanherbal.com/cara-mengobati-prostatitis/
http://arkanherbal.com/obat-aritmia-jantung/
http://arkanherbal.com/obat-patah-tulang-kaki/
http://arkanherbal.com/obat-cairan-di-paru-paru/
http://arkanherbal.com/cara-mengobati-mata-konjungtivitis/
http://arkanherbal.com/jenis-jenis-benjolan-di-payudara/
http://arkanherbal.com/cara-mengobati-kanker-payudara/
http://arkanherbal.com/cara-mengobati-mata-keruh/
http://arkanherbal.com/cara-mengobati-tumor-ovarium/
http://arkanherbal.com/obat-turun-berok/
http://arkanherbal.com/cara-mengobati-kista-ginjal/
http://arkanherbal.com/obat-infeksi-dinding-rahim/
http://arkanherbal.com/obat-paru-paru-bocor/
http://arkanherbal.com/obat-benjolan-di-dinding-rahim/
http://arkanherbal.com/cara-mengobati-radang-testis/
http://arkanherbal.com/cara-mengobati-kram-usus/
http://arkanherbal.com/obat-penyakit-mata-glaukoma/
http://arkanherbal.com/obat-hipertiroid/
http://arkanherbal.com/cara-mengobati-rahim-kering/
http://arkanherbal.com/agen-eye-care-softgel-jakarta/
http://arkanherbal.com/agen-slimming-capsule-jakarta/
http://arkanherbal.com/agen-vig-power-capsule-jakarta/
http://arkanherbal.com/agen-eye-care-softgel-bekasi/
http://arkanherbal.com/obat-benjolan-di-testis/
http://arkanherbal.com/agen-eye-care-softgel-tangerang/
http://arkanherbal.com/agen-vig-power-capsule-tangerang/
http://arkanherbal.com/agen-slimming-capsule-tangerang/
http://arkanherbal.com/agen-vig-power-capsule-bandung/
http://arkanherbal.com/agen-slimming-capsule-bandung/
http://arkanherbal.com/agen-slimming-capsule-bandung/
http://arkanherbal.com/agen-eye-care-softgel-surabaya/
http://arkanherbal.com/agen-slimming-capsule-surabaya/
http://arkanherbal.com/agen-vig-power-capsule-surabaya/
http://arkanherbal.com/agen-eye-care-softgel-semarang/
http://arkanherbal.com/agen-vig-power-capsule-semarang/
http://arkanherbal.com/obat-mata-juling/
http://arkanherbal.com/obat-ablasio-retina/
http://arkanherbal.com/obat-degenerasi-makula/
http://arkanherbal.com/obat-buta-warna/
http://arkanherbal.com/cara-mengeluarkan-dahak-di-tenggorokan/
http://arkanherbal.com/obat-saraf-mata-yang-rusak/
http://arkanherbal.com/obat-kanker-usus-12-jari/
http://arkanherbal.com/cara-mengobati-gondok-beracun/
http://arkanherbal.com/cara-mengobati-benjolan-di-miss-v/
http://arkanherbal.com/obat-glaukoma/
http://arkanherbal.com/obat-paru-paru-basah/
http://arkanherbal.com/obat-hernia/
http://arkanherbal.com/cara-mengobati-retina-mata-lepas/
http://arkanherbal.com/obat-saraf-mata-robek/
http://arkanherbal.com/cara-mengobati-mata-buram/
http://arkanherbal.com/cara-mengobati-buta-warna/
http://arkanherbal.com/obat-gondok-beracun/
http://arkanherbal.com/obat-flek-paru-paru/
http://arkanherbal.com/breast-care-capsule/
http://arkanherbal.com/lycopene-softgel/
http://arkanherbal.com/ganoderma-plus-capsule/
http://arkanherbal.com/obat-amandel/
http://arkanherbal.com/obat-kencing-batu/
http://arkanherbal.com/obat-katarak/
http://arkanherbal.com/obat-eksim-kering/
http://arkanherbal.com/obat-kelenjar-tiroid/
http://arkanherbal.com/obat-benjolan-di-leher/
http://arkanherbal.com/obat-kencing-manis-kering/
http://arkanherbal.com/obat-diabetes-basah/
http://arkanherbal.com/cara-mengobati-penyakit-flek-paru-paru/
http://arkanherbal.com/obat-lemak-darah-tinggi/
http://arkanherbal.com/cara-mengobati-ablasio-retina/
http://arkanherbal.com/cordyceps-plus-capsule/
http://arkanherbal.com/blueberry-concentrate/
http://arkanherbal.com/deep-sea-fish-oil-softgel/
http://arkanherbal.com/triflex-capsule/
http://arkanherbal.com/lecithin-softgel/
http://arkanherbal.com/gastric-health-tablet/
http://arkanherbal.com/green-world-super-nutrition-nutrimax/
http://arkanherbal.com/cara-mengobati-retina-rusak/
http://arkanherbal.com/cara-mengobati-wasir/
http://arkanherbal.com/cara-mengobati-mata-plus/
http://arkanherbal.com/cara-mengobati-penyakit-gondok/
http://arkanherbal.com/obat-penyakit-batu-empedu/
http://arkanherbal.com/cara-mengobati-mata-berkabut/
http://arkanherbal.com/obat-infeksi-saluran-kemih/
http://arkanherbal.com/obat-ambeien/
http://arkanherbal.com/obat-kanker-serviks/
http://arkanherbal.com/obat-penyakit-vertigo/

Reply
11/30/2016 12:19pm

A master educational croping and changing will help a maker perform the best assertion inside the cardstock before it's shown proposed for evaluation/scattering.

Reply
11/30/2016 3:55pm

It focuses on the important points, claims, and information. It discusses the positive aspects of the topic. The author does well, good points makes, and insightful observations.

Reply
11/30/2016 6:54pm

It focuses on the important points, claims, and information. It discusses the positive aspects of the topic. The author does well, good points makes, and insightful observations.

Reply
12/01/2016 11:57am

Such are in actuality cool YouTube motion pictures, its my fortunes to go to see this page and finding these amazing YouTube motion pictures.

Reply
12/01/2016 3:08pm

Your commercial tenant failed to pay rent. You have heard that things are not going very well for them, but now it is apparent. As a property manager your duty and obligation is to resolve the issue as quickly as possible.

Reply

This remarkable app become initially built via developers for android gadgets only, but then due to high demand from users, it become launched on different platforms as well.

Reply
12/03/2016 3:55pm

It is very resourceful. It has developed some highly innovative approaches and ideas. It displays creativity and original thinking in his work. It contributes usable suggestions for improving work.

Reply

3 month payday loans instant cash
personal loans monthly payments
3 month payday loans no credit check
12 month payday loans
loans with no credit check and monthly payments
monthly loans
12 month loans no credit check direct lenders

Reply
12/05/2016 9:12pm

Paysaver Payday Loans supplies payday loan, cash loan loans as well as rapid cash solutions for whatever you need.

Reply
12/06/2016 7:57pm

Your article is superb and it most helpful. In my opinion such writing can be very much informative for many scholars.

Reply
12/06/2016 8:48pm

It focuses on the important points, claims, and information. It discusses the positive aspects of the topic. The author does well, good points makes, and insightful observations.

Reply
12/07/2016 2:35pm

It is very resourceful. It has developed some highly innovative approaches and ideas. It displays creativity and original thinking in his work. It contributes usable suggestions for improving work.

Reply
12/31/2016 6:58am

Thanks for sharing!

Reply

Nice to read that such training centres are the place to be, because in reality, most students do not fit the format of education. Especially now in the digital era, schools need fresh approaches for education. Thanks for the article.

Reply

Your blog is very informative. Eating mindfully has been very hard for people these days. It's all because of their busy schedules, work or lack of focus on themselves. As a student I must admit that I have not been eating mindfully but because of this I will start now. It could help me enjoy my food and time alone. Eating mindfully may help me be aware of healthy food and appreciating food.

Reply

In this short article I will define the difference between the terms "Faktor" and yield in Property investment in Germany. How you can use the Faktor as a tool to manage your property management and monitor the value development of your property without having to get an expensive valuation.

Reply
02/02/2017 7:25pm

Reply
02/03/2017 5:19pm

This is actually good to read content of this blog. A is very general and huge knowledgeable platform has been known by this blog. I in reality appreciate this blog to have such kind of educational knowledge.

Reply

Hi, just wanted to tell you, I enjoyed this blog post. It was funny. Keep on posting! Such a lovely blog you have shared here with us. Really nice.

Reply
02/14/2017 9:45pm

I was on your website and the interesting information thoroughly. You have shared best quality stuff in the content of the post. Keep doing the great work up.

Reply
02/16/2017 12:28am

I have visited your site first time but its much beneficial for me that's why i have bookmarked it for more news alerts. Keep sharing more useful posts i will visit your site again.

Reply
02/16/2017 3:47pm

Many inexperienced real estate investors lead their investment underwater simply because they refuse to admit that the management of their real estate assets should be outsourced to a professional. With so many specialties within the property management field, it's easy to steer away from the goal of growing a portfolio, if the investor acts as the property manager, leasing agent, bookkeeper, rent collector, etc.

Reply

I want to get more like this from here. Thanks for sharing.

Reply
02/19/2017 2:34pm

Find the best Agency web designs. Webdesign-Inspiration.com is an inspiration gallery for web designers.

Reply
03/09/2017 4:44am

Your commercial tenant failed to pay rent. You have heard that things are not going very well for them, but now it is apparent.

Reply
03/14/2017 3:34pm

This blog is really helpful to deliver updated educational affairs over internet which is really appraisable. I found one successful example of this truth through this blog. I am going to use such information now.

Reply
03/24/2017 9:11pm

Reply
03/26/2017 10:08pm

A professional web design company is very hard to find because there are just too many web designing companies today. Moreover, the professional ones are too consumed with work to take up additional work. A website is a face of the business;

Reply

Well I really liked studying it. This subject offered by you is very effective for proper planning.

Reply

Great post. I was checking continuously this blog and I am impressed!Very useful information particularly the last part :) I care for such info a lot. I was seeking this certain information for a long time.

Reply
08/14/2017 7:42pm

The top 5 objections Realtors give for not following up with their real estate leads. Are you copping out and missing out on business?

Reply
08/21/2017 10:42pm

So that you can pay for a person's initially personal housing around Singapore, you need to find more so that you can to remain a spotted set. Prior to now months a Singapore real estate field includes found major variations to your legislation regulating trades around personal asset.

Reply
09/25/2017 1:11am

When you buy insurance, the claims process sounds so simple: you suffer a loss, you file a claim, you get your money. The reality can often be more complicated, and it may be to your advantage to hire someone familiar with the claims process to help you--and that someone would be a public adjuster.

Reply
10/01/2017 6:02am

Beauti Queen amazing kolkata escorts agency alwyas ready for you at your doorstep. Beauti Queen provide you high profile independent girl in kolkata, escorts service in kolkata, kolkata escorts. If you are looking for the ultimate encounter in Kolkata then I am your sophisticated young Kolkata escorts that provides upscale companionship for making your night becomes true.

Reply
10/05/2017 1:57am

A real estate agency is a company that has one goal. That goal is to help you to buy or sell your home. There are thousands of companies today that claim to be able to provide you with these services.

Reply
10/06/2017 5:00pm

Jiya Roy is a high class luxury and premium independent escorts agency in Gurgaon offering sexy independent escort Girls, models and cheap rate call girls for incalls and outcalls and travel arrangements. Female companions available 24/7 for business events, tour guide and much more.

Reply
10/06/2017 6:53pm

Gurgaonfemales.in offers highly educated model from Gurgaon and best Escorts service in Gurgaon through some of its sizzling Independent escorts in Gurgaon Call Girls who are available to customers 24*7.

Reply
10/13/2017 8:21pm

Renu Das Kolkata Escorts Services has gorgeous females provides Independent Escorts Service in Kolkata call girls at 100% satisfaction with VIP models. Provided Kolkata escorts at our agency are professional in nature and are eager to serve you at your place.

Reply
11/04/2017 2:07pm

Are you looking to start your own business? One of the main components of the success of your business is to create a stellar website that will attract customers and make them want to buy your product or service.

Reply

Some simple steps you can take to get more backlinks, and traffic, to your blog. It's quite easy to get a lot more traffic.

Reply



Leave a Reply

    Certified Geek

    Joel Dennis is a Geek, Web, IT Professional, Broker and a Mentor on investment matters. If you want to talk about some cool ideas then feel free to send me a message at Broker@JoelDennisMuyco.com

    Archives

    July 2016
    June 2016

    Categories

    All
    Advocacy
    Fiction
    Financial Planning
    Health
    Novels
    Real Estate