We have all wondered if having a home loan is better than renting.
We also tend to worry over the actual situation we get into when we decide to take out a home loan. First with a home loan you will want to make sure it is a secure loan. In other words you are offering the bank a piece of collateral, usually the home itself to cover the loan in case you have mortgage arrears. However if the home loan works for you and you pay it off you are going equity. With renting you don’t have to come up with collateral because you don’t have to have a secure loan. You just come up with the money. The truth is with rentals you are throwing money away.
When you rent you are never going to see a return on the money you have paid. With a secure home loan you will gain equity as you pay down the loan. This means that the secure loan, although it has interest will in the end pay off for the amount of assets you have in your home. Your home will always be an asset as long as you pay down the secure loan.
