The Debate (6); Why buying a house is better than buying a car
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Umh… Some would think that this debate is a lot like “What came first, the chicken or the egg?” Something I wrote about a couple of days ago.
I’ve been lucky, as I have been both a house owner and a car owner. In all honesty, for me, there is no other option than buying a house first.
Make no mistake, buying a house or a car is one of the biggest decisions you have to make in your life. Let me help you with your decision.
Let’s flip that coin!
If you buy a car, you will have freedom. You can come and go wherever and whenever you want to.
On the flip side of the coin buying a house is an investment and definitely a form of security and stability. It is a house that belongs to you, and you can do with it whatever you want and again, also when you want to.
It's time for another flip!
Cars are a necessity and not an asset. A necessity? Yes, if you are a millennial, this is what you will tell me.
On the other side of the coin, you will learn that a house is an asset, often the biggest and most important asset you will ever have in your life.
As you are so good at flipping those coins, let’s do it again.
When you drive a car, you have expenses you have to cater for. This is mainly maintenance and fuel. These are expenses you cannot get away from if you want to travel from point A to point B.
Unfortunately, the expenses don’t add value to your vehicle. In fact, you are spending money on an asset that is depreciating. More about depreciation a little bit later.
On the flip side, expenses on a house cost far more than those on a car. The beauty, however, is that these are expenses you can see and that keep or even add value to your property. We say you are spending money on an appreciation asset. In other words, an asset that can grow in value.
One last flip of the coin!
Depreciation: The depreciation of most cars after the first year is +/-20%, and over 5 years, the value of your car will come down by +/- 40%.
What this means is that if you buy a car for 50,000 STEEM, the value of the car will come down to 30,000 STEEM after 5 years.
Appreciation: Now, the average property growth rate for South Africa in 2023 is 5.14%.
If you buy a property worth 200,000 STEEM the value of that property will increase to 210,280 STEEM after 5 years. This is what we call appreciation.
Your home as an asset can open those car doors for you, as you have a valuable asset, but you are going to find it very difficult for a car to open the house doors for you when you apply for a bond.
In the end, this is only my debate about buying a house instead of a car. You know what your requirements are, and you know what you can afford.
It is thus your decision, but make it a calculated decision and not a “being in with the Joneses” decision.
I invite: @ngoenyi @shabbir86 @max-pro
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Hello dear friend, welcome to our "Steem Fashion & Style" community. We are really happy to see your excellent publication. We always support such quality and plagiarism-free publications. We look forward to more such publications from you. Best wishes to you from our community.
Greetings friend, thank you for such a great entry for this contest as you have vividly explain with facts and details the reason why you prefer having a house first before having a car. While also point out that it is only your personal opinion. All the best.
Thank you! I appreciate the verification.
@patjewell
I am very happy with what you said because buying a house is better than buying a car because it is a very easy journey. Everything we have to keep things, we need our house to sleep, which is considered as the most important member of our life because if we have a house, then we will not have a house, then we will not.
This is a fact that Very few people recognize and the house will be what it is, then what is after the house, with your hard work and honesty, you can also get a car, you can get a lot. Where will you leave the car and where will you raise your children somewhere is an important question you have created a great post other activities great and my prayers.
🙏Thanks for mention me🙏
Oh yes! Someone who agrees with me!
A house is a must!
I am glad that I've invited you, as such a comment makes it all worth it.
If I ever had to get into a debate, I would like to have you on my team. You will make a mean team member.
TEAM 4
Congratulations! This post has been voted through steemcurator07. We support quality posts and comments!@chant
Thank you! 🎕
I'm always happy when I see your entry grandma because I know it gonna be interested to read, my eyes open when I see your Depreciation and Appreciation, the high value of selling our house in the future is reasonable enough to buy a house before car, Good luck grandma.
Hello!
Thank you for visiting my post and leaving such a nice comment.
When I saw this contest, I just knew I had to entry, not for the contest but for the advice.
Look, you can also go wrong with buying a house, but 99% of the time it is the right decision.
As for appreciation, be on the lookout for location when you buy a property, as it will give you the biggest return on your property.
Good luck for your Steemit journey!