The ancients said: "Live and work in peace and contentment." "Since ancient times, owning a house of their own has been the persistent pursuit of home by Chinese. The house is not only a haven for us, but also a place for the soul and the foundation for us to settle down.
However, in today's society, with housing prices on the rise, buying a home has become a top priority for many families.
In the face of such an expensive "safe place", should we not hesitate to choose "one-time payment", and from then on be debt-free and light? Or do you choose to "repay the loan for 30 years" and repay this huge expenditure slowly in installments?
01
When many families in need are faced with high housing prices, they are more inclined to choose the way of "repaying the loan for 30 years" to realize their dream of buying a house. There are several deep-seated reasons behind this choice.
For most people, the biggest loan they can get from a bank is a mortgage. This type of loan is not only large, but also has a relatively low interest rate.
Many people believe that this is a rare opportunity to use financial leverage, so they are more inclined to use the power of banks to buy a house through loans.
On the other hand, real-life housing prices remain high, making it difficult for many families to pay for a home at once. Especially in second- and third-tier cities, it takes at least 1.5 million yuan to buy a 90-square-meter commercial house.
For the average family, this is a huge expense. Therefore, choosing to take out a loan to buy a house can spread this cost over the next 30 years, thus greatly reducing the financial pressure of the moment.
In addition, there are some people who have the ability to pay for the house in a lump sum, but they are not willing to put all their money into the property.
They prefer to use their funds for other investments or entrepreneurial projects in the hope of higher returns. In their view, if they put all their money into buying a house, they are missing out on other potential investment opportunities.
As a result, they prefer to take out a loan to buy a home so that they can use the remaining funds for other projects that have more opportunities to be profitable.
02
However, the "30-year repayment" approach is not flawless.
While mortgage interest rates are relatively low, loan terms of up to 30 years mean that homebuyers will have to pay a lot of interest. These interest rates add up to maybe even enough to buy another house. For many families, this is a significant financial burden.
Moreover, there are large variables during the "30-year loan repayment" period. For example, a homebuyer may lose their job or have a reduced income during the loan period, which will lead to a sharp increase in repayment pressure.
In addition, home buyers' incomes can also become unstable as they age. All of these factors increase the uncertainty of loan repayment.
What's more, many people are overly optimistic about their investment capabilities. They believe they can use the remaining funds to invest and start a business, so that they can get a high return to pay their mortgage.
However, the investment market is full of risks, and it is difficult to guarantee stable returns without professional investment knowledge and experience. If the investment fails, not only may you not be able to pay the mortgage, but you may even face greater financial losses.
03
The biggest advantage of paying off your home in one lump sum is that you are debt-free and lightweight. Homebuyers do not need to be burdened with long-term loan stress and no longer worry about repaying their loans every month, thus ensuring the financial stability of their families.
In addition, many developers or sellers often offer discounts or concessions to encourage one-time payments, which means that buyers can further reduce the cost of buying a home.
Without the shackles of loans, homebuyers can plan their lives and futures more freely, without having to tie down their career choices and lifestyle in order to repay their loans.
However, the disadvantages of paying the house in one lump sum are also obvious.
For most households, high housing prices make a one-time payment impractical. This requires the family to have considerable savings or be able to raise sufficient funds quickly.
Moreover, a large one-time expenditure may lead to a strain on the family's financial chain, making it difficult to cope with future uncertainties or unexpected events. Families may struggle if they experience financial difficulties in the future or need financial support.
Therefore, before choosing to make a lump sum payment, it is important for buyers to have a full understanding and planning for their financial situation to ensure that this option does not put long-term financial pressure on the family.
In this era of skyrocketing housing prices, the choice of home purchase method is particularly important. "Lump sum payment" and "repayment of the loan for 30 years" have their own merits, and there is no absolute good or bad.
It is important that we do what we can according to our actual situation and make the most suitable choice for ourselves.
Either way, make sure you don't put too much of a burden on your family life and maintain your quality of life and happiness. Buying a house is not only to have a place to live, but also to pursue the warmth and tranquility of that home.