To Own An Asset Or To Own Liability?

I can always hear people are saying that they want to earn a lot of money to buy a house. How many really understand this statement? They will buy the house with minimum deposit and make themselves in debts with the bank.

Do you know  when you take up housing financing loan is actually causing you a lot of money for the house due to the high interest rate you signed in the loan agreement with bank? You will become the slave of the housing loan. If you are not in the position to service the loan then the house will be under repossession by the bank.

You are not the owner of the house and you are actually do not own this asset if you are still have outstanding loan with the bank. Many people like to say that they have bought a house, I think they should say mortgage a house instead.

In this new generation, many young couples are rushing to get a house with minimum down payment. They are unlikely to consider what if they face with financial difficulty one day. They actually make themselves into debt before even starting a family. 

Therefore, a proper planning should be in place. We want to own an assets and not liabilities. Buying any assets with financing help is not owned it but is a liability. You can avoid this if having proper planning. You can buy any house with minimum deposit and with financing help, but do you have any plan that to help you shorter your repayment period to save you thousand of money ? You have to work out one today.

You can invest your money in the share market, unit trust and insurance with investment elements account which can bring you with good return of income but you have to be wise in selecting lowest risk of investment with maximum benefits to meet your purpose of investing.

Remember, we want to own the house and make it become our asset and not letting other to make money out of our asset. Begin your proper planning today if you already in servicing your housing loan or you are planning to buy one. Work out a plan to achieve this and you can own your asset and not liability.