Home is the first thing poor people plan, whereas it is the last thing the rich plan.

A credit card makes the poor fall into debt, whereas it is the best tool in the hands of the rich.

It is all due to financial literacy. If you lack it, you may perceive liabilities as assets, vice versa.

51% of millennials have regrets about buying their home.

So, I decided to throw light on whether you can take a home loan.

The Outcome of Taking Credit

Many of my friends are victims of credit cards and blocked them. Some closed their cards after repaying everything. Some had to close their accounts due to not being able to repay. In the end, the majority are suffering. It doesn’t mean they are regrettable. But it is the result of not knowing the proper usage.

If you are taking credit to spend on assets, then it gives the best returns. — As they put money into your pocket.

However, if you are using credit to spend on liabilities, they take money from your pocket. At the same time, you have to repay your loan.

I am sure you must have got my point that home is a liability.

Why Home is a Liability? — The Rich’s Way of Thinking

What happens after you buy a house? You will be happy and on cloud 9. Then you visit your relatives’ house, and your spouse sees a nice sofa set. — Boom! You will get a similar sofa set in your home. The list goes on. Because after having a home, it won’t feel good if you don’t fill your home or have great things in it. Due to that feeling, your expenses increase after buying a new one.

In addition to that, there will be maintenance costs as well. Moreover, you will go with a high-end house, high-end furniture and want everything high-end. And it comes at a price, also costs so much for repairs and all that maintenance stuff.

That is the reason the house is the last thing the rich people spend money on it. They build assets first and buy a home when the passive money from their assets help them lead the same lifestyle.

So Should You Take a Home Loan?

Real estate is booming. So, you may spend money to buy a house after seeing the offers. — Because you can get a loan and can repay from your salary.

But with time, even your commitments also increase. That is when pressure builds up in you due to monthly EMIs. So, my suggestion is to build assets first. And make sure the money you make from them can pay your monthly home loan EMIs. Then taking a loan won’t be a problem for you. It helps you have a house without compromising many things.

Moreover, if you intend to invest money to make money from real estate, going for a 50% loan would be a better option as it gives you more profits.

So, if you fall into the second category of looking to profit, here are good options to make money from real estate at less to zero cost.

Final Thoughts

In simple words, if you are buying a home for investment purposes, going for a home loan would be a good option. However, if it is for staying, you could opt for it if you have assets. Also, make sure you have money reserves for at least nine months so that you can survive in unexpected situations as well.

I hope you found value in this post. Should you take a home loan now? Share your thoughts in the comments below. I love to know if this post has an impact on you.