The nice thing about owning a home is that you actually build up your saving.
Thats true in some countries, but not so in all countries. Ownership in some places means simply paying on the interest without any assumption about paying on the principal. A person could still make money if their property appreciates because of market conditions where they could cash out when they sell it, but there’s no guarantee on that.
Wait, how do you get a home loan where you don’t pay on the principal? That’s not even a loan at that point; that’s just renting except you also have to pay for maintenance.
We have these in the USA too. Its called an " interest-only mortgage".
that’s just renting except you also have to pay for maintenance.
Lots of things you can do here that you can’t do renting:
Since its you are the owner house you can make any changes you want to it
If the property appreciates in value because of market conditions, that’s YOUR money thats not the landlords money
You decide who lives in it. Landlord can’t tell you no
Pets if you want them
no security deposit
mortgage payment stays the same forever, this “rent” never goes up in price
All of that said, I don’t recommend interest-only mortgages in the USA because a home is one of the most accessible investments a person can have with strong legal protections keeping others from taking it from you via legal means.
Thats true in some countries, but not so in all countries. Ownership in some places means simply paying on the interest without any assumption about paying on the principal. A person could still make money if their property appreciates because of market conditions where they could cash out when they sell it, but there’s no guarantee on that.
Wait, how do you get a home loan where you don’t pay on the principal? That’s not even a loan at that point; that’s just renting except you also have to pay for maintenance.
We have these in the USA too. Its called an " interest-only mortgage".
Lots of things you can do here that you can’t do renting:
All of that said, I don’t recommend interest-only mortgages in the USA because a home is one of the most accessible investments a person can have with strong legal protections keeping others from taking it from you via legal means.