Have you been able to own a house or still renting a place? If still renting, read on to know what you are loosing and to know how you can save 1000s of dollars.
When we Rent a place, what we Loose?
While looking for a safe and comfortable abode for ourselves, we hire a property dealer. Now even hiring one is not an easy process, we shop around to find who can serve us the best at affordable price. Once this is over, we then with our realtor start searching a suitable place that fits well in our budget and matches our lifestyle as well. After a few days of searching, we may find a house good enough to live in. Then comes the rent agreement, leasing of property, not to mention about the terms and condition set by landlord. And finally with the help of movers and packers, we shift to a new place. Now at every step from searching a property dealer to finally shifting to the place, what have we lost? Hard earned dollars, precious time and energy, not to mention about the mental tensions. Now we need to pay every month to landlord, i.e. for the whole year we will pay him/her a decent amount and get just a temporary place, with limited independence, to live in .
How you can save?
Assuming you earn enough to afford a decent monthly rent and have an average credit rating. Apply for a mortgage. It is very easy; you can do it right now with the click of mouse. Now lenders will mail to you or talk to you regarding your requirements. They will send you quotations, which you can compare using our Online Mortgage Calculator. The whole process from application to sanction of loan may not take more than a week. Some lenders offer 100% finance.
How you are Building Asset?
The down payment you have made plus the equated monthly installments you are making and the appreciation value of the house are all contributing towards the building of your asset. Assume you buy a house in $ 200,000 and make a down payment of $ 20,000. $180,000 is your outstanding payment, which you have to repay through equated monthly installments. Your equity in the house on the day you made a payment of $ 20,000 is $20,000. Gradually, it will increase with each installment you are paying. Say after 10 years you have paid $ 50,000 and the value of your house have appreciated by 20%. Your equity in the house in that case will be down payment amount + repayment of principal + appreciation of the house. Mathematically it can be expressed as: $20,000 + $ 50,000+ $40,000 =$110,000. Now, think you have gained all this with an investment of $20,000. Equated monthly installments can not be ignored, but think the same amount if you have invested in rent what would be your gain. Absolutely nothing!