Land ownership is a controversial subject. Most people are tricked into thinking that owning land is a lot safer than renting land but this is not always the case. The same situation applies when taking into account the normal mortgage rates versus the military mortgage rates. Although the balance is seriously titled towards the fact that military mortgage rates are more affordable and better to use, when it comes to the owning versus lending problem, both concepts have an equal amount of advantages and disadvantages. In the end, the perfect scenario is different for each individual. Let’s dive deeper into this subject and see what are the matters that you should consider before making this decision.
In fact, both concepts have an equal amount of advantages and disadvantages. In the end, the perfect scenario is different for each individual. Lets dive deeper into this subject and see what are the matters that you should consider before making this decision.
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Financial security
When you own something (by owning we mean being free of mortgages and debts) you feel a lot safer because you know that no matter what paths your career will take, you will always have a roof over your head. It you decide to get a loan in order to buy a house or an apartment, you need to be very certain of your financial situation. It is impossible, of course, to be 100% confident that you will always have a job. However, you should have a steady job for a few years now and it would be a lot safer if you had another income to count on such as the spouse’s income. If you are single, you are at the beginning of your career and you don’t have any financial support from your family, you should stick to renting land for now. The financial security is an important element in the decision of owning land. However, when it comes to the military world and the comparison we made above, the security of owning your own place is overshadowed by the need to relocate and not be rooted in a certain area.
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Home security
When owning a property, you have full control over that property’s security features. You can install any security device you want in order to feel safe in your home, from a smart lock to a wireless security camera system. The same purpose cannot be achieved by a renter, as you can’t really install anything in a home that isn’t yours. You could get the owner’s approval to install several security devices, but that means investing money in another man’s property. Sure, you can always get renter’s insurance, but that will only cover possible financial losses, whereas no insurance in the world can make you feel safe at home. On the other hand, an alarm system, a smart lock and a security camera can significantly increase the security level of your home.
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Profit
Whether owning land is more profitable than renting land is a dilemma which depends on your location. If you live in a city where the rents are just as high as the mortgage, it makes sense to buy a home. Even if you decide to move in a couple of years, you could rent the land in order to continue paying for the mortgage. The decision to buy land should be based on investment concepts. You need to do a little research in order to see how your chosen neighborhood will develop in the following years and whether buying land in that certain neighborhood is a value investment.
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Home Improvements
As a home owner it is your job to maintain homes. This means taking care of all maintenance ad up keep with the home. If your roof starts to leak you will need to contact the professionals to fix the leak. But if you are renting it is not your financial responsibility to keep up with these maintenance problems. If you are renting and there is a problem you can just contact the landlord and they will take care of any issue. If you own a home it will also be your job to make sure the home doesn’t start to look out dated. You will need to keep the outside and inside of the house looking updated.
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Lifestyle
People who dream about having a family believe that owning land is the best decision because even if you spend all your life paying off the debt, at least you will have something to leave to the children. However, our society is a lot more versatile than it used to be. Most people go to college in other cities where they usually stay even after graduation. If you have a talent for investments, it is a lot wiser to invest your savings in order to be able to help your child with something which he really needs. If all your savings are going towards paying for the house where you live in, while your child is paying rent in another city, then you are not necessarily doing him any favors. The decision to own land should be grounded in the present; if you think that you would be happier by owning a home, then by all means, buy one! However, if owning land will put a lot of pressure on you and all your extra money will go towards paying off debts, then perhaps you should wait before making this decision. There’s no point in wasting your youth, paying off debts when you could be a lot happier renting a place.
