My Values Regarding Home Ownership
My child said to me, "I really don't want to pay off the mortgage. By the time it's paid off, I'll be in the coffin. What's the point?"
If I had heard them say that a decade or so ago, I would have been furious, and at least tried to change their minds. But the me of today actually thinks they are wise.
I once heard that some young people, even professionals, who have been working for several years and have saved hundreds of thousands for a down payment, still feel stressed by a mortgage. The most important thing is that they work until past eleven at night every day, sometimes even staying overnight at the office, and they don't know why they're working so hard to pay off a mortgage. Of course, using saved money to buy a house is indeed a good investment choice. But if you have to borrow money from the bank to buy a house, you'll find that the payments over twenty years are enough to buy several more houses. And I feel, based on my many years of experience, that renting allows you to choose a newly renovated place you like. But if you buy a house, you need to have money before you can renovate. And now that paying off the mortgage is so tough, where would you have extra money saved for renovations? Moreover, if there's any problem with the house, such as a leak from upstairs, a burst sewer pipe, or even a troublesome neighbor, you can't just walk away.
Some people also say that buying a house is for old age. When you're old, you don't have to worry if no one rents to you. Because many people don't like to rent to elderly people, they're afraid they might die in their house.
For this issue, what you need is a substantial retirement fund. That way, even if no one rents to you, you can stay in a hotel, or even buy your ideal house to live in. In fact, if you save the money you'd spend on a 20-year mortgage, even with inflation (it's best not to keep it in the bank, invest it instead), the money you save could buy you a small house when you retire. Of course, some people will say, "Who doesn't know that money can solve everything!" But how many people have the perseverance to save up that 20 years of mortgage money? In fact, once you start paying off a mortgage, there's no guarantee that the house will still be there in 20 years and that you haven't sold it!
So, the goal in life should be to have enough money to spend when you retire, not to worry about no one renting to you when you're old.
However, coming back to the point, you don't know what tomorrow holds. Even if you plan so well, you might get hit by something falling from above or get into a traffic accident tomorrow and die. So all your planning would be in vain. That's why I say my children are wise, because they know how to live in the present, and that's the most important thing. Of course, if it doesn't affect your quality of life and you're under no pressure, it would be even better to plan for your future *retirement life!
*Note: If you really can't save money, or if you get swindled out of all your retirement savings when you're old, then you'll need a filial child to support you, or surviving parents to sponge off of! Otherwise, you might have to rely on the government to support you!