Real Estate and its lure is such that without knowing it, you’re that person who loves Real Estate! Well, loving real estate isn’t the problem; the problem is making decisions that aren’t based on information but on hear say and “gut”, often both these factors prove detrimental to your desired outcomes.
Let’s look at this; most people who choose to rent a place to live in are paying an “X” amount to their landlord. Now if the same amount were to be allocated towards a mortgage payment, little would change except of course some added expenses.
Here are a few things that could change if you were to replace your rent payments with a mortgage payment:
- Down payment – Your Start Up investment is everything! One of the most common factors that hold back first time homebuyers is the scarcity in terms of accumulating enough money to make a down payment. We suggest starting small and slowly building up your resources. What changes? You will have money in the bank!
- Forced Savings Plan – A mortgage once in effect, is a forced savings plan. Not only will you look back and feel amazing about yourself but think about this; if the property were to jump up in value, you’ve now made money you didn’t even factor in! Cynics would argue, what if the property value actually went down? Well, you still need a place to stay, don't you? Here is where buying one primary property is an amazing investment regardless of where the market goes.
- Do what you want, when you want it – This is far more serious than it sounds! Imagine if you could put a pool, a trampoline, or even a garden of your choice? This goes for even your interiors and the kind of space you want to be in. Owning a house means you can reduce your overheads in terms of going out or hosting friends/family in restaurants. With your own space at hand, you will invariably save more money than you can imagine!