Hello great and lovely community, I am very inspired to answer this question today. I still believe that so many are still contemplating this question and not yet being optimistic as regarding their answers. So today I am going to make your choices very easy for you to pick an answer by weighing each one and pointing out its benefits, pros and cons at every stage in your life.`
Image source
But first I will tell you a story....
There were two brothers, June and John who lived in a two bedroom apartment with their single father, Simon. Mr Simon worked for a private organisation and has retired and has been living on his and provision by his sons. They lived for years in a rented apartment being pushed at, ordered at, even sometimes insulted by landlord and co-tenants on many occasion and this frustrated all of them but only Jude the eldest of the brother showed furiously his frustration. He became so irritated living with co-tenants and he wished greatly he could have his own house without tenants to create mess and gossip around. His brother John tells him to always be calm while there is time for everything and that when the time comes you will own your house and manage it the way you want without anyone to control you around. Jude would grumble and walk away impatiently.
Mr Simon had lived a ripened age and was now so sick on bed and having felt he might leave soonest decided to call his sons. After some emotional moment, he opened up a secret that would make Judes dream come true. Their father told them that he had stashed his life's savings including his pensions somewhere safe only to be accessed after his departure from earth. He told them that all his total savings had amounted to ten million naira which must be shared equally between them. At first both children expressed disappointment over the news, that while they lived almost in poverty, such amount of money was stashed somewhere.....Well after the grief washed away, excitement seeped through.
Years later after their father had passed away and each of them holding five million naira, Jude didn't waste time concerning a property he had being eyeing for long. The property was a furnished three-bedroom duplex which cost Eight million naira. June went to the bank to get loan of three million naira and was given. Now with bank's loan, his money summed up to an Eight million. He went straight to the lawyer in charge of the property and bought it. The duplex was now in Judes name. Jude thought to himself " Now I have my own house without anyone to disturb me about rent, maintenance or whatever, I will raise my children here and my brother and friends will visit me and marvel at my property ". Finally he settled in, changed his job and began using his few savings on himself and his newly acquired property. 
image source
Meanwhile John the youngest borrowed from his late father's actions on the continuity of being poor to be rich tomorrow. He continued to live in the apartment where his father passed away and made plans for himself. Due to his friendly nature with the landlord, he was given an opportunity. The landlord had a lot of properties and he raised the offer for an apartment of five room and parlour self contained each to be sold to him at Eight million naira but John humbly bargained for a million lesser and the landlord agreed. Upon payment, John told the landlord on what he had currently and that he would go to the bank on loan. The landlord smiled and told him not to go to the bank to avoid interest charge by the bank. He would accept what he had currently and give him two years to pay the balance. This made John so happy that he started work immediately on his newly acquired property. In less than two months, he leased the place out for rent and before the sixth month his newly acquired apartment were already occupied that after two years he paid his balance to the landlord and was still making money off his property while he lived in a rented apartment with his old time job.
The story ends here but can you deduce what each of their future is holding right now?
Owning a house is not a big deal if it truly defines your purpose in life. First we will look at the pros and cons if owning a house and decide if this will define your purpose or not.
PROS OF OWNING A HOUSE
FREEDOM: It is true that when you're in possession of a property that is not fully yours, you will always be daunted by the owner of the property. To be free from such torment, you should become the owner. When you own a house no one comes to disturb your peace or lecture you on how you maintain your home. The property is yours for years to come without fear of eviction.
PRIVACY: Having your own property gives you total control to know who comes into and around your home. Privacy is very essential in a man's life. Owning your house gives you the freedom of doing whatever you wish without the prying eyes of others. For instance, I can sleep naked beside the pool in my compound. I don't have to always stand up in fear of someone peeping on me or being present.
MAKING YOUR HOME A FUTURE INVESTMENT: We all know how prices of properties appreciates over time. Now when it happens that relocation comes, the property can be put up for sale and eventually bought more than the price previously paid for. By doing so you increase your financial profit.
EASY LOAN ACCESSIBILITY: There are great financing options that can pummel you to quick and worthy loans to own a house. Unlike sometime ago when you had to wait to age 40s, 50s to have finally accumulated money from hard earned savings before owning a house of your dreams, but now at 25, 30 you can easily apply for home loans like mortgages and pay back with little interest (depending on duration).
STABILITY OF MONTHLY PAYMENT: For those acquiring or aspiring to acquire bigger properties may likely go for mortgages. Mortgages are long term loans issued out for securing homes of your dreams. Types of mortgages are the 30 years fixed mortgage, 15 years fixed mortgage, adjustable rate mortgage, balloon payment mortgages etc. Naturally most people try to obtain the 30 year fixed mortgage because of its long-term payment. In choosing this loan type, there is a fixed spread monthly until the loan is paid in full.
EXPENSIVE NOW, CHEAPER LATER: When we take into consideration the cost of buying a home like the down-payment fee, homeowners insurance and appraisal fees, it appears to be much greater than just paying monthly rent to a landlord. But after paying all these, years to come you will discover its a lot more cheaper as you won't have to pay those things again.
STABILITY: Owning a home provides and improves stability for many people this days since its a long-term commitment and appears to be a larger investment. Moving every few years is quite unlikely.
CONS OF OWNING A HOME
Sometimes the mortgage payments can be higher than the rental payments in some locations depending on the type of mortgage you go for.
Now owning a home means you don't have some landlords doing the maintenance and repairs of your home. You get to do it solely by yourself and now you have to consider the cost of all of these all the time.
Due to the large investment already made by obtaining a home, you are forced to make a long-term commitment in that location. No freedom to move away in few years as in rented homes. And if forcefully done as home equity not fully matured, it would be to your discredit.
Taxes paid on property admist mortgage expense will probably cost you extras.
Having seen these let's go to the pros and cons of renting a home.
PROS OF RENTING A HOME
One can move around to different location entirely when rentage becomes expired.
The landlord has the sole responsibility of maintenance and repair since the property belongs to him.
It is true that the monthly expenses are very predictable and only once in a year do little changes occur (little increase in rentage) otherwise with homeowner almost shouldering every responsibility of his property, renting is budget friendly.
Monthly rent payments seems to be quite lower than house payments.
Improved savings overtime occurs after renting a home because you actually get to know your daily and monthly expenses which are so little compared to being a house owner where you get to shoulder all responsibility.
CONS OF RENTING A HOME
One cannot build home equity or receive benefits of tax in a rental apartment. This is only for homeowners.
Not all landlords allow pets in their homes.
Paying your rent on time always will certainly not improve your credit like paying mortgages.
You can't change anything about your home without the approval of your homeowner.
Rules and regulations must be followed strictly according to the agreement of the lease.
Wow, having seen all these you now know that either of them is good. Either of them sets to define your purpose in life. The question is, at what stage do you need either of them?
John needed to boost his income so he acquired an asset and preferred to live in a rented home so his asset could generate him income. He is less stressed now financially. His purpose was to make more money, so staying in a rented apartment seemed fit for him. (Purpose defined) while his acquired property fetched him the money he needs.
On the other hand, Jude struggles to pay debt (mortgages, maintenance and repairs, tax on properties, light bills, waste bills, HOA fees etc) even though as years go by and the longer he stays, he gets tax benefits and builds home equity. It is fine to him because it has defined his purpose. (He always wanted his own apartment disregarding whatever cost it comes with).
We all can see that John makes more money than Jude. This is because they have different goals in life. They all put the money into good use.
Now ask yourself what your goal in life is before taking a major step as to renting or buying a home. Do you want to make money or live in luxury? Thanks for stopping by to read this article, may you make the right choice and stay blessed.
#leofinance #India #indiaunited #waivio #finance #proofofbrain #leogrowth #neoxian #contest
Posted using LeoFinance Mobile