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🏡 The “I want a house” trap
Join the Money Boss Club on Telegram
”I want a house on my own land”. I hear this everywhere I go. Before we go into if and when this is a good idea, let me ask you, who has put this idea in your head? I know who shouts this the loudest - the banks and loan finance companies. They put up big posters and advertisement on social media of the new home and make it clear, that you have been dreaming about this all your life.
Did you ever ask yourself why the banks have the best locations and the nicest office buildings in every city?
Why they pay good salaries and the owners are the riches people in the country?
The reason is simple. They tell you that you need a house and a land and they will provide you with a loan. They pretend to help you follow your dream, but in reality they will make you a slave and you are working hard to make them more money.
A house and with a little bit of land is can easily come to $80’000. Every bank is happy to give me a loan to buy it. The reason is the bank always wins. If I pay off the loan in the next 15 years the interest I have to give the bank about $40’000. I worked for the land and house that is worth $80’000 when it was new, 15 years ag o. I also worked very hard to pay an extra $40’000 to the bank. Now the house is ready for repairs and I am tired of working for the bank and have nothing saved because my payments for the loan where so big that I had not money to save. For sure the bank is now very happy to give me another loan to help me repair my roof, well and repaint my house. I take another loan and continue to work for the bank. Now I am broken, angry and frustrated and regret my choices. Why in the world did I ever needed this house? Now I know, a house is a liability not an asset.
Let me tell you there is a better way to have a house and land without the punishment of paying interest and falling the into the loan trap. I now know about the power of compound interest and I know that I will let the bank work for me. I rent a small place and make a saving plan for the next 10 years and put $450 into a long term account with 8% interest. You know what is crazy? I will have saved $54’000 and the bank has given me $27’000. I love it when the bank works for me. I want the bank to buy me a house. When I move into my new house on my land it is payed off. Now I can continue to save $450 for my next goal. I am not in debt. I am free! If repairs come in 15 years, I am ready.
There is nothing wrong with wanting to buy land and a house. But there are good ways and bad ways to do it.
Make a smart decision and don’t waste your money.
Before you take a loan play with this website to clearly see how much interest you will pay for borrowing money.
https://www.nerdwallet.com/calculator/loan-calculator
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By ND STRUPLERJoin the Money Boss Club on Telegram
”I want a house on my own land”. I hear this everywhere I go. Before we go into if and when this is a good idea, let me ask you, who has put this idea in your head? I know who shouts this the loudest - the banks and loan finance companies. They put up big posters and advertisement on social media of the new home and make it clear, that you have been dreaming about this all your life.
Did you ever ask yourself why the banks have the best locations and the nicest office buildings in every city?
Why they pay good salaries and the owners are the riches people in the country?
The reason is simple. They tell you that you need a house and a land and they will provide you with a loan. They pretend to help you follow your dream, but in reality they will make you a slave and you are working hard to make them more money.
A house and with a little bit of land is can easily come to $80’000. Every bank is happy to give me a loan to buy it. The reason is the bank always wins. If I pay off the loan in the next 15 years the interest I have to give the bank about $40’000. I worked for the land and house that is worth $80’000 when it was new, 15 years ag o. I also worked very hard to pay an extra $40’000 to the bank. Now the house is ready for repairs and I am tired of working for the bank and have nothing saved because my payments for the loan where so big that I had not money to save. For sure the bank is now very happy to give me another loan to help me repair my roof, well and repaint my house. I take another loan and continue to work for the bank. Now I am broken, angry and frustrated and regret my choices. Why in the world did I ever needed this house? Now I know, a house is a liability not an asset.
Let me tell you there is a better way to have a house and land without the punishment of paying interest and falling the into the loan trap. I now know about the power of compound interest and I know that I will let the bank work for me. I rent a small place and make a saving plan for the next 10 years and put $450 into a long term account with 8% interest. You know what is crazy? I will have saved $54’000 and the bank has given me $27’000. I love it when the bank works for me. I want the bank to buy me a house. When I move into my new house on my land it is payed off. Now I can continue to save $450 for my next goal. I am not in debt. I am free! If repairs come in 15 years, I am ready.
There is nothing wrong with wanting to buy land and a house. But there are good ways and bad ways to do it.
Make a smart decision and don’t waste your money.
Before you take a loan play with this website to clearly see how much interest you will pay for borrowing money.
https://www.nerdwallet.com/calculator/loan-calculator