Mortgage or Rent? Bank or no Bank? Loans the Wise Way!
The truth is while we have a mortgage we don't own the property, the bank does until we finish paying them for the loan.
When you borrow money from the bank to buy property it's not just titled a loan, it's called a mortgage.
After more than ten years I agree that while I had a mortgage owed to the bank I was living the Morgue-Age of my life.
1. Property can earn you wealth and prosperity if you have the means to look after it. If you cannot afford the high costs of owing property you will be creating a prison of payment stresses while you do own it!
2. Rent is money in and money out. The landlord can change things in ways that may throw you off your path. Raise rental costs, disrupt your living for the renovations that only benefit the Landlord. Why because if you rent you don't own it. The renovations may be nice but did you really want to have a few hundred dollars added to your monthly rent (not your property). Also smells and noises out of your control.
3. Owning property is not all that it sounds to be. After your set mortgage payments there are extra costs involving your time and money and if you don't have enough of either then your in Stressville, full time anxiety! Extra costs, include, property taxes, repairs and maintenance.
4. Even if you rent it out it's your responsibility, both time and money.
5. Having a mortgage is like running a business with the inclusion that you most likely live on your property.
6. Insurance is another extra payment you will need to have with your mortgage. Why? See 5.
What's the smart approach to property and mortgages if you are facing this in your life?
1. If you can EASILY afford mortgage and property tax payments and all the other related costs and surprises, GO FOR IT!!! A property is like a car. You want a vacation but you can't go now because you have to fix your car brakes. Also If you want to live through a cold season owning property you will need money to heat it.
2. Take the time to find the right interest rate with the best institution that you can. Ideally if you can find the right balance between investing your money in the property and keeping enough to save and spend to live you should do well.
3. Be honest about how you predominately spend your money now. If you like to live it up can you really afford the prison of a mortgage and incur a deep debt?
All the best when dealing with a loan!
Peaceful Progress >>> Powerful Results
Think Well!!
