Our house is acquired thru a housing loan from the bank where my husband was working in 2001. After some years, when I was granted a housing loan from our office that charges a much lower interest rate than my husband's bank, I had the housing loan transferred. So now our house is mortgaged to the bank where I work and in just a few years we can fully pay it.
I wouldn't take a housing loan since though the land the house is built on is an appreciating asset, the house itself is a depreciating asset. I would rather invest the sum in a high yield investment program (HYIP) and then build a house from the proceeds. Another option would be to construct housing units with a view to raising money from it to offset the cost of the house.
Many years ago, my father started building a house in the city from the money he made by selling land. When he the fund was used up and the house still incomplete, my father applied for house loan and he was accepted. We completed the house, however, we had a hard time paying back the loan. It took us 15 years to payback the loan.
Owning a house is one of my dreams. I would apply for a house loan and sacrifice for a couple of years to pay it back. It's one of the greatest achievement and it's worth the sacrifice. Dealing with paying my rent every month is hectic and I would do anything to get out of it.
The dream of every family should be to own their own house but saving towards that could take a too significant part of one's life time. So it's always a good idea to go for housing loan. This is very hard to obtain in some places being that bank's requirement to qualify for this loan is out of the reach of the average man.
Most families will opt for a housing loan rather than wait for the time when they can well afford to buy a house and lot in cash. Thankfully, my country has a housing agency that functions like a cooperative. Membership to this agency is mandatory for employed citizens and employers must contribute the same amount as that of their employee. For at least 24 monthly contributions of $2, you can apply for a housing loan with a low monthly interest starting at 4.5% per annum and loan terms of up to 35 years with repricing after the fifth year of the loan. Banks are another option with most of them offering competitive rates to match the housing agency's rates.
