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The beauty of house ownership
Owning a house you call home is one of the most important achievements in a life time. But this doesn’t come cheaply. Building a house requires money, commitment and determination. For some, the thought of it puts them off so much that they won’t even think about it. Owing a house can be achieved through a mortgage or personal savings.
Before I can compare building a house using your savings as against a mortgage, let’s look at having the idea to start building.
The objective of building ranks high among many annual plans. Having plans to build reveals financial intelligence.
Building your first house is a long term plan which requires sacrifice. What puts us off is the word “long term.” It doesn’t apply much in the 21st century. We want things as soon as we can think of them.
So, most people who get land buy cars and not or a piece of land. This is most probably because a car eases your movement, gives you class and builds your self esteem.
When I bought my first car, I remember looking at it through the window and say to myself, ‘Can you imagine I own that machine out there?” But a plan to build won’t manifest all these mouth-watering feelings for you - at least in the short term. People on the road won’t know you own a piece of land like they would for a car.
Like it or not, that is where majority of us make mistakes. If you’re unlucky, your mother will ask questions such as, “You have been working for five years, do you have anything to show for?” You have other expensive items, but no land or home!
Your land Lord’s prayer is for you to keep your job, live long and never build. If you rent for a long time, your friends may start thinking that the land lord bewitched you. I know of a gentleman who had fallen behind on his monthly rental payments and when we posed the eviction option to him, he made sure to remind us that he had been living in that house for over 10 years. Which property manager can argue with that? It’s cruel to yourself to get attached to something you don’t own.
So if you have an income, first thing is to contemplate on the intention and plan to build. Imagine your own home, what it would look like, location of the kitchen, master bedroom and colours. Thought and intention will equal to resource and results. The earlier in your life the
better it is for you and your family.
The ability to put up a house says much about your personal financial insight. It’s all going to start with what you will need first. This includes land, building plan, financial plan, labour, materials, accessories. This will help you draw a budget that will see you archive your dreams.
Listing down what you will need and how much it will cost is your second step in the process. You can get this information by doing research on the materials, seeking advice from those who have done it before or hiring a professional to guide you along the process.
Like any project, expect the unexpected hindrances. A good plan or budget is a guide in such shortcomings. The longer the construction takes, the more costly so be flexible.
Implementing a plan to start building or getting a house through a mortgage has positive financial effects than renting in the long run.
Weigh your options- opt to be financially wise and start building. If you are taking that thought seriously, then this article is a success.
The writer is the general manager of Smart Accounts Ltd
