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Finances - can you really afford not to build a log home?

This is quite possibly the only affordable - mortgage free - way to build.

One of the most important objectives of the course is finance. I teach you to build without a mortgage in other words, with your own cash. I'm sure that most people do not want to work as a slave to the bank for their entire working lives. Do you?

Banks and loans

There's no doubt about it, building or buying a home is probably one of the most expensive investments you will make in your lifetime. Some people spend their entire working life paying off a mortgage. Your average mortgage takes 20 years to pay off and you will end up paying back way more than double the original sum which you have borrowed (depending on the interest rates, you could end up paying much more!)


Some things to bear in mind

  1. Are my job prospects for the next 20 years secure? Lately the worldwide economy doesn't seem so good.
  2. Will the interest rates still be this low in 20 years? Personally I don't think so.
  3. What will you do if you can't afford to pay your mortgage?
    Some facts about home loan interest rates
  1. they are currently at their lowest since 1973
  2. In August 1998 the prime interest rate hit 25.5% in SA. Which is not long ago.
  3. Historic interest rates

Be honest with yourself - When you take out a mortgage, you are committing yourself to work as a slave to pay the bank for the next 20 years.

Think I'm making this up?
For you own sake check out the Affordable loan calculator from Standard Bank. 
Simply enter your monthly salary minus your monthly expenses and see what you qualify for. Is it enough to buy your dream home? 

Another way of looking at it, is to check out how much that home you need or want costs and then use the Standard bank monthly repayment calculator to work out how much you need to earn to be able to afford it. 
For the sake of it, I'm not taking a poke at Standard bank, most banks are probably charging about the same. 

Last thoughts

I have built this great log home for less than the deposit on the loan I would need to build or purchase it the conventional way. 
Building with this method can easily be done with your own cash and over weekends.
In the right circumstances some people build nearly for free by harvesting their own timber.

Until such time that you have completely paid back every last cent on your mortgage, you do not own your home, you may tell all your friends that it is "my house", but it is not, it is owned by the bank. Also bear in mind that you are responible for insurance and maintenance of an asset that you do not own throughout this period.

It is much less work to build your own log home than it is to pay off a mortgage.

Building with these methods could result in a profitable business.

By following my teachings, this is easily achievable.




South African Log Home

Builders Association

Teaching people to build their own quality mortgage free log homes.