When it comes to providing a home for you and your family, you have two options to consider. You have to figure out if it would be better to rent a property or it would be better to build your own property so that you own it outright. Your parents have probably told you from a very young age that you should always try to make sure that you have a roof over your head but they didn’t mention whether or not you should be renting or buying. There are many reasons why buying is a good option right now and the interest rates at the lending institutions are lower than they have ever been.
Some people like the option of renting a property because it allows them to walk away from it at any time and to move somewhere else. If you are a responsible type of person and you have a family to take care of then it makes a lot more sense to get involved in house building (known as บริษัทรับสร้างบ้าน in Thai) rather than just giving your money to a landlord. If you’re still finding it a little bit difficult to make up your mind then maybe the following reasons for building and owning your own home might help you to make a smarter financial choice.
- Cheaper to build than rent – This surprises quite a few people because they wrongfully think that renting can help to save money because the cost of a mortgage would be double what the rent is. This is in fact true and on average building your own home works out at about 40% cheaper than renting over a long period of time. If you’re lucky enough to get yourself a fixed mortgage rate when borrowing money to build your home, then you know exactly how much you’re going to be paying for the next five years and at least you have the peace of mind knowing that you’re going to own the property in the end.
- You can create equity – After paying the mortgage on your home for a number of years, there will be a gap between the value of your home and what you all. This is called your equity and you can use it to leverage money out of the various lenders if you want to add to your property you want to buy something completely different.
It just makes so much financial sense to build your own home than to continue renting and just throwing your money down an endless pit.