In the Philippines, having a car can be a huge relief and a great lifestyle improvement. You would have a relatively comfortable commuting experience on a daily basis, especially if you work in Metro Manila. Although you can avoid the long lines of the MRT or spare yourself the ordeal of riding jam-packed buses with Grab or Uber, owning a car lets you go from one place to another faster. However, you shouldn’t put more importance on it than owning a house.
Both assets are great to have, but home ownership makes more financial sense in many ways. If you could only buy one for now, here’s why you should focus on having a house first.
A house is an investment
Insightful reviews of Lancaster New City would tell you that being a homeowner automatically makes you a real estate investor. If you buy a property in a hot market, like Cavite, Laguna, or Batangas, you can passively grow your wealth in equity.
On the other hand, your car would depreciate by at least 11% the moment you to drive off the lot.
A car is fool’s gold
Many Southeast Asians consider car ownership as a source of prestige. A vehicle is a symbol of status, making you feel good in the eyes of the public.
But then again, a car isn’t an investment. It could actually increase your monthly expenses; apart from the loan you take out, car ownership comes with its regular gas, insurance, and maintenance costs.
Whereas a house can earn you more pesos at resale, a car won’t let you recoup most of the money you spent when you acquired it.
Better mass transportation systems are on their way
The Duterte administration is bent on improving the mass transportation system in the country, particularly in the metros. It won’t happen overnight but expect the status quo to be better in the years to come. If you want to buy a car just to escape the rigors of public transport in the Philippines, put your money in a house.
Having the means to buy both a car and a house is an advantageous situation. But if you’re like most Filipinos could only afford one asset at a time, prioritizing the latter is a sound financial decision.