Hi all, this topic is a hot one with me and maybe you to.
I really resent what the banking and lending industry has done to the average Joe in america. Why do we have mortgages anyway? Because we buy more house than we can afford? Or more house than we need? Or could it be because we buy more house out of want? Want to live better than others. Want to show our ability to servise more debt. Conspicuous consumption!
The acquisition and display of expensive items to attract attention to one’s wealth or to suggest that one is wealthy.
This gets us in a lot of trouble and is a no win game people play all there lives. Trying to out flaunt others.
The price we pay is quite literally our lives!
The best years of our lives are spent servicing debt. With our time spent working everyday to make payments for 30 years and more trying to pay it all off so we can retire in some form of comfort. We hope that this sacrifice of our lives will get us a great life in our golden years. The problem is our health is at risk and we have no control over what our home will be worth or our retirement savings.
I have seen far to many people reach retirement age lately only to find that there invested savings for retirement went down the drain along with the value of there house. For most americans the number one biggest investment they make is a house. It is and can be a large part of there retirement strategy. So why then do we stack the chips against ourselves by taking out huge mortgages and equity lines and second mortgages and 30 year loans on houses we can hardly afford?!
Why not buy a less expensive home and save the money to pay cash? Or at least a large down payment on a shorter term. Better yet build your own home. Pay as you go build as you can. I and my wife did just that. We didn’t know how to build when we started and so we got help and learned and built a small 24 x 36 foot simple plain A roof home. A 2 bed one and a quarter bath home for cash. We didn’t get a loan and did not have a lot of money. We both worked full-time and we were raising 4 young children at that time.
Crazy! but we did it! It took a couple of years to do it and we lived in an unfinished home while we built but in the end we had no mortgage. We eventually added on to the house for more room for our growing family. The girls shared a room as did the boys. As the kids got older the boys moved to the basement to have a 24×24 space to spread out and the girls each had there own rooms.
Suddenly within 3 years we were down to one kid in the house.Three graduated and moved out and we had a lot of house left over. Way more house than we needed. So we planed to sell after our last child went to college. The equity we will have after we sell will pay for our next smaller house that we will build again ourselves. Somewhere a little warmer;) and near the ocean.
It pays to build your own home for cash. It does not have to be big or fancy just solid and livable. You will have instant equity your home will be worth more and your balance sheet will be in the black from the start.
If you can have some patience and take the time to learn some skills to build your own home (it is not as hard as you think) and be willing to deal without the instant gratification of buying a home with a mortgage. You could rocket your self way ahead of the average american by eliminating or at least minimizing your largest expense in life housing.
What would you do with the money you are spending on housing now? If you owned your own home no payment your financial picture would likely change radically from where it is know.
Think about it…