Having a house of your own is a dream seen by a million people and is usually an inspiration to other people to get out of their rented ones A own home for many actually represents freedom where in one can do whatever he wants to. So let’s take an instance where in you have a good job, but not enough money to buy an own house. So what can you do about it? Mortgaging would be the best option. A bank or a housing finance company would consider your application for a mortgaged loan taking into account your capabilities and the net worth of the house. If both seem satisfactory then the bank/institution issues the loan keep the house documents as mortgage. The interest is charged monthly and may be after a certain period of time, may be ten to fifteen years, when the loan is completely paid, the documents are returned to the owner. So how does the bank gain? The bank charges the borrower a certain interest through which the bank makes great money. And whats our advantage – We get a loan at the required time and usually after a certain period of time; the value of the land appreciates. Hence compared to stocks/shares this seems to be a good investment for long time business people.
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