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Mortgage - Why Mortgage is Better Than Rent

March 17, 2009

Renting or opting for mortgage are both systems of acquiring a property either for personal or business use. It could be used for fixed properties or for automobiles. Both are options available to individuals when they do not own a property of their own where they have chosen to live or work.

Here are the reasons why one must opt for mortgage on either personal or business accommodation.
• when you opt for mortgage instead of paying rent to the owner on a regular bases, you pay the bill regularly to own the asset. Both are same periodic payments but that of mortgage is for ownership.
• If one is on rent the possibility of the rental sum going up is more positive, however an agreement taken on mortgage payment is fixed and depreciates as years go on.
• Refurbishing your apartment means adding more value to your landlords asset while if you are on mortgage, you are adding value to your own property.
• While renting the fees you pay as rent goes into your liability column while if you are on mortgage, it goes into asset column. Remember, a liability is anything that takes money away from your purse while asset is anything that puts money into your pocket.
• Mortgage allows an investor to eat his cake and have it back. You have the opportunity to enjoy using the apartment for free and also owing it as its proceeds meant for the rent takes care of both renting and ownership.
• Opting for mortgage enables an investor to freely offer the said apartment for sale and re-cop all he has spent on it. It could be a special savings.
• Apartment on mortgage could be tendered as collateral for future businesses while that of rent cannot be used as such.
• A mortgage taken against renting increases an individual or organizations credit rating, thus financial institutions will be glad to associate with you and also inform you of other new opportunities.
• Opting for mortgage increases an individual or organizations financial intelligence. It forms the bases for financial mastery, freedom and independence in years to come.

Investing in house ownership or acquisition via mortgage adds value to ones financial status known as net worth. This option makes one save money indirectly, owns a property and the property appreciates. Rent paid out in 10-20 years is normally bigger than the total cost of acquisition of such property at inception.
This is a road less traveled!

by Kingsley Chinaemerem Igwenazor

Written by paydayla · Filed Under Home Loans 

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