Aside from thinking of starting a new business, many are caught in a great debate whether to invest in a home versus a car— a true milestone every millennial is hoping to achieve. For some people, buying a house and lot or a car would be the obvious choice, we are talking about a great deal of money, that is why it’s significant to study your choices and know the advantages of each.
Add to that the fact that houses and cars don’t exactly come cheap. So knowing what your priorities are is a must before making that jump to purchase either of these. Some people will make a good reason for getting a car; it’s simpler to maintain, more affordable, and easily accessible, after all.
But with the present market, the continuous rising of gas prices, and worsening traffic conditions, is a car really the best practical option? Here are reasons why opting for a house could be a more sensible FIRST investment:
A Car’s Value Depreciates
As an article on Forbes notes, “an automobile is a depreciating asset. As it ages, it loses value rapidly and drastically. There is very little chance of an automobile used for personal transportation will appreciate.” If you’re NOT buying a limited edition or capable of turning your car into a vintage work of art, there is no chance anyone would pay you more than your initial investment.
Why Does a Car Depreciate?
Several factors affect a car’s depreciation. They include:
The older the car gets, the lower the market value.
- Make and model:
Popularity counts. The less desirable car model and make is on the used market, the lower a car’s worth usually will be.
The more miles that appear on the odometer of the car, the more value the car gradually loses by the time it’s traded in or sold. An odometer with high reading usually means a higher cost of upkeep and reduces the vehicle’s remaining useful life for its new buyer/owner.
If your car has been experiencing normal wear and tear, the impact on depreciation usually is less. The case will differ if there’s been substantial damage, such as large stains on the inside or big dents on the outside. If a car has been in any accident, the value can be affected even if all damage has already been fixed.
- Ownership history:
If the car is well-maintained and had only one owner, it will probably be more valuable than if it has been maintained poorly and has changed hands between different owners.
- Gas prices:
Fuel-efficient cars usually depreciate more when gas prices are low. On the other hand, gas hogs depreciate more when gas prices are high.
Cars with a neutral paint color like black or silver may retain their value more than cars with “exotic” paint colors. That’s because neutral colors tend to remain popular over time.
Cars that have a brand reputation for longevity and quality might depreciate at lower rates.
You Can Earn Money From Owning Property
While cars depreciate over time, land and other real estate appreciate. Property rentals seem to be a more worthwhile source of income for many. Invest early, earn early. A lifetime investment that you can pass to the other generation.
The good thing about owning houses, especially in great areas, is that the house and lot will keep gaining value over time. Investing in properties early or purchasing a property currently in pre-selling can also make you more money. This means that you can buy a house and lot cheaper and then resell it for a higher price once the property has gained more value. Another way to add more value to the home is to upgrade or furnish it to be more valuable once you decide to resell it.
Camella Savannah in Iloilo
Depending on the location, a property can eventually have a higher resale value
Research and you’ll find enough reasons, not just on the developer but the surrounding areas as well as infrastructure plans, in line with the BUILD, BUILD, BUILD Project of the current administration, then you can choose a location that will help you make profit in the near future. Other factors you need to consider are nearby highways, convenience, fault lines even, parking, and the conditions of nearby developments.
Purchasing Your First House and Lot Is Easier Than You Think
Some may find the idea of looking for their first home to be a daunting and challenging experience, especially since times are hard. With the prevailing effects of the pandemic on the economy, prices of our day-to-day necessities continue to rise. With a bit of help and research, buying your first home or property investment is easier than you think.
There are very flexible payment schemes and plans so that you can quickly and smartly invest your money in a place that you can own and call home. Investing in an automobile would require just about as much research and planning. But it would be best to invest in a house and lot first since it does provide more benefits in the long run.
With the help of technology, reserving and finding your new home here in Camella is now made more efficient and easier!
Browse through hundreds of property listings under the country’s top developers at All Properties.
You Can Safely Invest In A Car After
A HUGE plus of being secure with already having a place to call home is that you can safely make investments in other things. As they say, “You can’t park your house into a car.” While the premise of the idea is a little outlandish, the fact behind it is pretty evident.
The feeling of being safe, secured, and comfortable at home and having a convenient lifestyle is the first step to becoming financially stable. When you are financially secured or stable, you won’t have to worry about cutting corners, and you can go right ahead and choose whichever model you love in cars or buy anything you want.
Whether you choose a car or a real estate property for your first investment, the MOST important thing is you know how to maximize the opportunities and be financially responsible enough to follow through with proper maintenance.
Finally, convinced and is ready to invest in your own home? At the end of the day, an investment you don’t know how to take care of isn’t a risk worth taking. All Properties has a buyer’s guide for you to get you started. View our listings and choose the perfect HOME for you.