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Why is home ownership rather a saving plan than an investment and non-housing wealth is not so common?  Find the difference between winning and losing, grow with home ownership and stop worrying


Planning Home Ownership

Difference between Winning and Losing

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Home ownership - saving plan or investment?


Owner-occupied homes are a huge financial commitment when looking at the costs  paying off a mortgage. If you believe your house is an investment, well, I would ask you—what is the return on your investment? An owner-occupied home looks to me like a good saving plan to cumulate wealth or a “nest egg” for future needs.


As here illustrated, if you pay as homeowner more than one million to the bank you should plan financially ahead. Interestingly I met over the years lots of people thinking financial planning is something only for people who are wealthy and financially secure. The truth is—if you do not have a plan where to go, you go nowhere. It is simple like that.


The only people, who stop dreaming, set goals and strive for achieving them succeed with a mortgage-free home. That is why non-housing wealth is not so common. A “cash aside plan” would work similar by re-investing cash, but for many it is too easy to withdraw money from the bank.



Difference between winning and losing


People who don’t plan spend far more time and money on fashionable stuff and gadgets than asking themselves “where do I want to be in five years time and what do I need to get there?”


It is so easy to “get it now and pay later” by using hire purchase and credit cards. People do not cross an unstable bridge risking their lives but financially they operate without safety net for unexpected changes in life such as accidents, unemployment, etc. Being vulnerable  to fail is the difference between winning or losing. Failing to pay bills and bad credit ratings  backfire unexpectedly later in life when starting a family, business, or applying for a loan.


Instead of reading motivational books and investing in new skills people remain passive and depend on a single job or income but dealing with multiple subscriptions for SKY television, mobile phones, leased cars and hire purchase.


Good on you -  by reading this you have started turning your life into something bigger as you are today.




Doing, watching or doing nothing


People feel how economies work in their pockets especially when all is not well with the world. When things happen in life, we can either feel sorry or take a problem as trigger point for working out a solution. If so, why not taking the responsibility for all the things (good and bad) that happened to you and become the driver of your life. In the driver seat you take a different view as sitting in the passenger seat. You would care for the fuel, travel plan and distance, and you would know how often to stop on the go.


That attitude towards getting results changes everything. On your journey e.g. a flat tire would not question the destination and a detour would give you new viewpoints and opportunities. And that exactly happens to homeowners working for results. Would it be nice getting something for nothing, but actually that never happens.


You possibly know these types of people, those who plan and do things to happen, those who watch things happen, and the rest sit and clueless wonder what just happened.




Grow with home ownership and stop worrying


A simple way to turn life around is by asking in the morning - what do I do today to make life better, and at night—what have I done today for a better life?


Around the house are many little things you can do every day that can improve your lifestyle. To live within the means by balancing the budget—that habit is a really obvious one. When doing it with a partner, you possibly know—achievements result in strong relationships.


Change habits as example, when switching off the television for only 60 minutes a day that would result in 365 hours spare time a year, or around 45 working days for doing something for life and relationships. Don’t waste your time watching other people’s life and enjoyment—take care of your own life. 



Take Away

Stop dreaming—start doing. Even making mistakes and learning something is better than doing nothing. Time spent for worrying is lost time for an active life with friends and family. Use your home to turn into someone bigger – it’s your life.



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Klauster Blogs lead to a real person, an experienced renter for more than 25 years in Europe, South Africa, Australia, New Zealand and became a landlord/investor  before founding Klauster Properties Ltd in 2006.


The passion of making experiences available and helping people to avoid pitfalls has been rewarding by forming lasting relationships.


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