Thursday, April 10, 2014

A Mortgage Is A Death Pledge

A system is initially a programmed process which eventually over time becomes part of the natural way of living and thinking. Without us realising we belong to many systems, the question is can we identify them? One of such systems is that of buying property. Having your own property has become a must for many of us, but not having some property then you have nothing. Well my question to you is if you don’t have nothing then how else will you be able to achieve anything without a Mortgage?

The word Mortgage in French means “Death Pledge” Quite an interesting fact. Some may define this as and when the financial obligation eventually has been settled by the buyer or when the bank obtains this by foreclosure.

The title of "property owner" for some is quite empowering, a concept which financial institutions have slowly introduced to us over many years. There is nothing wrong with ownership, the issue I believe is the manner in which that ownership is acquired, and that is where mortgages come into the equation. This mentality for some may have started whilst we are young. Monopoly for those of you who remember was a property game, which despite it being loads of fun, it slowly introduced us to the concept of buying property. Recently this board game is being adapted to different age groups and preferences trying to appeal to many more people.

Like everything else, getting a mortgage these days has become a natural process for many of us. The bottom line with getting a mortgage is to be able to say that you have you own your property (and not only) when you are 60 years of age. It feels quite rewarding no doubt, but being 60 and saying that finally I have my own property, is that a real accomplishment in life? Perhaps! I have discussed this topic with many people but it appears that they do not seem to agree or grasp this concept, but I understand why they can’t see this and that is not their fault.

A question which people pose to me regularly is, “If we do not get a mortgage how else will we have our own home?” I believe that people are forgetting that everything in this life time is temporary, when we leave this physical existence we are not taking anything with us. So, what you are buying in reality you will have temporary ownership over it anyway, so its like a lease anyway.

Then people say, “But this property will remain for our children and grandchildren”. From my experience any property which has been left to children/grandchildren has resulted in conflicts, leaving behind problems and even splitting up families. There are exceptions no doubt. Furthermore, property also has a life expectancy, and nowadays they don’t make them like they use to unfortunately.

Some raw truths to note about mortgages:

1. You may physically live in your property but under the real meaning of ownership unless you have fully paid off your mortgage you own nothing.

2. You have an ongoing pressure to meet the monthly installments of your mortgage. We have all been a witness to the economic crisis and how this has left people out of jobs and even salary cuts. A mortgage is a mortgage no matter what, job or no job. Despite you having the option to sell, during a crisis this is unachievable.With a lease you may change property to adjust to circumstances in the worst case scenario.

3.Your monthly installments tie you down and prevent you from taking a holiday or two during the year.Well if you do you are cutting it quite fine, unless you are a high income earner. 

4.Having a mortgage requires you to work hard just to secure your job to pay for your mortgage. Working is one thing working hard is another. It is these little things which affect working environments because the stress levels are at the forefront of people’s lives and this leads to unattractive working cultures i.e. too competitive environment.

A lot of people these days are turning to a leasing lifestyle. Leasing is convenient and you are more flexible to making changes, i.e. change living location, change work etc. Having this flexibility is like having some space to breathe. Having a mortgage you need to ask for some space to breathe.

There are a lot of people who are literally not financially capable of simply getting a mortgage, and those that do are struggling. Who said that people should struggle in this manner? Yes, hardships and challenges do exist but this is torture, because people are swayed into acting as per the norm, and who said the norm is normal?

Many people have the financial ability to take advantage of mortgages to help generate more wealth. If you can do this then that is fine. There are others who are not in a position to do this, without struggling. We need to realise that there are other options, and we need to stop thinking that by not owning something we have nothing.


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