Why Owning A Property Is Beneficial?

Today we’re going to talk about why owning a property is beneficial for you.

As part of our day-to-day life, we definitely have to live somewhere right? And living in a space would have to mean either living with your parents, living with your relatives, living with your friends could be fun in a dorm, you know when all of you are there, or sharing a pad, it’s quite nice. Living with relatives could also have pros and cons.

Today we want to talk to you about the advantages of owning your own property.

The first reason why owning a property could be good for you is you have your own privacy.

Privacy is difficult to get if you’re living in a dorm and your friends are just walking around everywhere, or probably if you’re living with relatives, it could be difficult for you and your family.

So having your own space where you can actually do your own thing, you could work, you could bring the kids to school, you could arrange your day schedule according to how you feel it is correct without anybody having to telling you otherwise, it could be a very good thing. Plus, if you need to host some relatives or probably you need to host some friends there, it’s okay. You’re actually able to do it on your own terms.

In the family, you could guys could actually really talk without getting bothered. You can have all of these moments. You could actually also enjoy on your own terms. The nice thing about it is you’re able to actually create a lifestyle design that you really want instead of just adjusting to everyone else.

So having your own property also could also be a beneficial thing for you.

Number two is storage for your stuff.

When sharing a residence with someone else you will actually really only have very limited space to put your stuff. Probably  – the odds are –  it’s just going to be your room.

So when you have your own property, you can have a place where your can put your nice stuff in a certain area or your collections, your hobbies. You can actually have a hobby room or an office. You can actually have a walk-in closet where you can put all of your stuff.

So having your own property also gives you a certain freedom to actually own and then store all of this stuff without having the need to compromise.

The third and one of the most important facets of owning your own property is capital appreciation.

You have your money, you bought the property, you keep the value of the property. If a development happens in the area where you bought your property then luckily capital appreciation might happen.

Now when you’re buying real estate I always say that you cannot avoid talking about investment as well. So when you’re buying your own property whereas in renting after a month it’s gone, it’s not exactly lost but you’ve actually used up the space and in return you’re paid money for it. But the difference when you’re buying a property is that when you buy it, it’s there, you’re paying the monthly amortization and it’s yours.

Now after ten years, fifteen years, come that time that you probably want to sell it, you still have the same amount of money if we’re talking about capital preservation, or if the developments in the area have been better, there are better road networks, more commercial areas, offices, space, then possibly capital appreciation might happen.

So it could be better for you.

The money that you invested will have more value and you’re able to sell it for a profit, which is very good for you.

Now how many times in your life have you had money at the beginning of the month and then at the end of the month you don’t have it. Where’d it go? What happened to it? Buying a property could be a way of forced savings into putting money into a bank account and then eventually come selling time, you’re able to sell it at probably the same amount, or if not, higher, that would always be better.

So buying a property could actually help you have more money in the future by being an agent of forced savings for you.

Number four is the potential for rental income.

In today’s world where you actually get the money at the beginning of the month and at the end of the month you don’t have it anymore, it could be quite tricky as far as putting your money into a good investment.

Property is one of those weird things that you actually have a benefit of renting it out and earning passive income. That’s why there are so many millionaires that are actually engrossed in investing in properties because number 1, it doesn’t need expertise. Number two, it’s a passive type of income. Number three, once a tenant starts renting from you normally, they stay there for a minimum of a year, so it guarantees you a passive income for a year.

So having a cash flow potential in terms of rental income is very beneficial for you as far as owning a property is concerned. And you cannot get this with renting out. It could happen as well in some very unique instances when you are subleasing a property, where you lease it, then you sublease it, that talk is for another time but it could be quite difficult.

But not all properties are allowing subleasing, either in condominiums or homes. So it could be a very unique setup. But in general most properties could be leased out if you own them.

And if you own them, and the property’s price goes so high that it’s not very practical to buy, who will win? You guessed it right, the landlord of course.

So the nice thing about owning a property is you’re owning a prime piece of real estate in a certain area giving you the advantage of having a potential cash flow and if the cash flow is big enough it could even fund your retirement.

The fifth and most important advantage of owning a property is security of residence.

If you are renting a property, odds are the owner might have some plans in the future to resell the property or probably if you encounter disagreement with your landlord, they can evict you or not renew your rent. This may cause problems for you down the line because it’s going to take up your time looking for another property, moving your stuff, settling down the deposit again, pulling your life out of the area, moving to another place. It could be quite difficult.

Now, if you’re saying it could be easier if you’re going to rent in the same village, that is if you’re going to find another house that you actually also like. Now, as far as security of tenure is concerned, if you have your own property, you won’t need to worry about anything else, you have the security, you’re just going to be there, you’re not going to evict yourself, it’s not going to happen right?

Having your own property gives you the security that you’re able to lock-in to your lifestyle, at the same time you’re able to triple your money that way, you have the capital preservation or appreciation, you have the potential for cash flow, and you have security of tenure, you’re occupying space.

So, in effect, you’re actually renting for “free”. It’s not really free but you know you’re able to split your money in several folds that you might have not gotten otherwise.

So that’s it for today. I hope today’s topic was able to give you a better idea of why owning a property could be really beneficial for you. I hope this is able to help you in your personal decision and in your business decision.