CHAPTER 5 : HOUSE PLANNING (TYPES OF HOUSING ( Condominium, Apartment, …
CHAPTER 5 : HOUSE PLANNING
ADVANTAGES OR RENTING A HOUSE
We can avoid
falling house prices.
We can have a
better cash flow
. (If we choose to buy, the tips of smart buying are, take advantages of sales, compare prices and ask for a refund policy.
no need to pay for down payment
, legal fees and installments or in other words, costs of acquisition. We can rent a cheaper house and put the extra money in other investments.
We can be
, because we do not have
to renew the rental agreement if we do not like the house or its surroundings. We can even rent a house near to our work place. Or we can try different types of residential properties before buying one.
FACTORS TO BE CONSIDERED BEFORE BUYING A HOUSE
Since a house is regarded as lifestyle asset, we need to consider whether it offers privacy, leisure activities or does it satisfy our personal needs.
The design, layout, size and physical condition must be evaluated in order to gain if possible the fullest for the investment made.
Where is the location? Is it near to schools, hospitals, place of work, shopping areas or it can be accessed by private automobile or by mass transit?
To buy a house, we will need a lot of money. We will live in for a longer time period compared to most purchases done. A mortgage loan is the biggest debt you will ever incur and the monthly installments represent a major portion of one's budget. If one can pay for DP and the monthly installments, owning a house would offer attractive financial benefits.
OBJECTIVES IN BUYING A HOUSE
Long-term capital growth
Reasonable income yield
If the house is being rented to someone else, the rental income is able to partially cover monthly mortgage and hopefully with some extra left.
Rate return above inflation rate
The rate of return that we get compared to the inflation rate is normally higher that the inflation rate.
A house value is not only preserved but also steadily increasing in value.
TYPES OF HOUSING
House / Landed House
TYPES OF TITLE