The question, for those in financially challenging situations right now, are you living in a rented home or do your parents own your house? What's the difference? Well, I just want you to have an idea of how things work with owning versus renting. You see, not most of us were exposed to this during our younger years. I was born in the '70s. The reason I'm writing about this now is to open the minds of your generation about having your own home. Eventually, you will settle down and have your own families, well most of you, unless you choose to devout your life as a religious. Well, anyway, here goes.
Ask yourselves, what good will it do me if I have my own house for my own family? For others who would like to be young and independent, what good will it do me to have my own place? You may ask, why are you even talking about this? Let's write them down:
1) If you get married, you and your wife/husband can live and raise your family the way you want it to be. No complications with in-laws. No pressure, no stress, and you will be able to have and preserve your healthy relationships with your in-laws (well, ideally).
2) If you are single and you're the type who wants to be independent, you can learn, grow, and experience to start your own life.
3) If you are single, but still opt to live with your parents, maybe you would want to get a passive income and investment. This is the road to financial independence.
4) Would you prefer to rent for the rest of your life? When you rent, yes, you and your family have a place to stay but with the money, you pay for rent the house will never be yours. You will keep on paying as long as you stay there.
These scenarios are facts of life. You can ask your elders to validate especially for number 1. You know kids, I often hear our elders say that they don't want their children to go through the same sufferings they've gone through. I feel the same way. I'm thinking that maybe things could change and your generation can have a better way of life given the proper information.
What can be done? You have to start on the right foot. Just like a game, know the rules and how you'll win the game.
For a start, know how to qualify in getting your own place. Income matters. Know the monthly payment for the place (house & lot, condominium, etc.) multiply it to 3.5. Example: Monthly Payment is P15,000, multiply it to 3.5=P45,000. To qualify you should be earning P45,000 gross monthly income. Gross meaning taxes included.
What does this mean? What's the point? Well, remember our scenario? You are in senior high school, getting ready to go to college. Well, research. What job or business earns P45,000 monthly and you would enjoy doing?
What's 3.5 by the way? Why multiply the monthly payment to 3.5? Most of the financial institutions like banks and even real estate developers find that income earner can afford to pay a loan if the monthly payment is around 1/3 of their monthly income.
What's the point? House is a basic need of man. Before you develop a habit of spending on other things, make sure you can get yourself a house. That is the common mistake young people make. There are a great number of young people who have developed the habit of shopping, others going to clubs and bars, and some into traveling. Then a time comes in their lives when they realize they need a house, a place of their own but they can't afford it anymore. Some are already in debt and they find themselves unqualified to get a house. I really hope, your generation will make that change.
If anybody reading this gets my point, shoot me an email.
If anybody reading this gets my point, shoot me an email.
Photo source: Pinterest decoratoo.com
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