The question of owning a car vs owning land is a constant problem that every urban dweller has to haggle about at some point in his/ her life. If you are having a hard time worrying over whether to buy a car that will get you to work and probably elevate your status, or whether to invest in a piece of land for future’s sake, then this article is for you. We take an in-depth look at how you can consider both matters and end up with a conclusion that suits you.
Why compare a piece of Land and a Car
Times have changed and we can no longer dismiss owning a car as we used to some few years back. Societal dynamics have drastically changed and you would want to really look into these two perspectives clearly.
Land is a great resource and investment that appreciates with time. You can buy one for reselling at a profit in the future. A car helps you get to work in good time, you can meet more moneymaking deals in a day with your own car, and nothing would be great if you had a means to carry your own family around. After all, you need a way of getting home fast enough without making endless queues on bus stops.
Why Buy a Car
There are real and justifiable reasons why you would need to have a car in your life. As much as a car is a liability in the financial aspect, there are instances when having one outweighs the liability aspect.
1. Family purposes
If you already have a family, then owning a car is important. Moving around with your family on public service vehicles is quite limiting and to some extent very difficult. In this case, having a car is important and beneficial to you.
2. Irregular Working Schedules
If your job calls for you to work on irregular terms, then owning a car might be a great decision for you. With your own car, it feels safer to leave your home for work as early as 4am as it is for most people working in the media industry. You can also extend your time at work and you will not have to worry about catching the last bus on your route.
Why Buy a Piece of Land
Land is by far one of the greatest investment products that have a certainty of appreciation in value. Owning a piece of and is a great deal for a financially woke person who wishes to see a marked influence in life by the kind of returns that land offers to an owner.
1. You can build your own home
This is the best reason why you should put your money in good use by buying a piece of land. Often, it is always cheaper when you buy your own piece of land then develop your own house, rather than buying a house that is already built in the market.
2. Land can actively generate income for you
Land is not only an investment for its value in case of a future resale. Rather, you can develop your own piece of land in multiple ways to gain income right on. You can choose to build rental apartments on your piece of land and you will be generating income through collecting monthly rent.
You can also create an income stream in your piece of land by practicing modern farming. You can choose to grow horticultural crops such as vegetables and fruits for sale, or you can choose to keep animals that require less space. You can rear chicken for the commercial outlet, or you can rear some cows and resell the milk and heifers at a great value.
Contrasting a Car Purchase vs a Land Purchase
a) Initial Costs
Depending on the location of your purchase of land and the make of the car you want to purchase, one may be more expensive than another may. However, you can always find land that is of more value than the money you pay for. If you go for a low-cost car, chances are that you will be buying a used car that has already lived through most of its life.
b) Running/ Maintenance Costs
Unless you are building a theme park out of your piece of land, land has very low running and maintenance costs. Except for annual land rates, you will only have to pay for development and value addition in your piece of land. For a car, you will regularly require to buy new tires, change the oil, and buy fuel. You will also be needed to pay for insurance and buy spare parts.
c) Appreciation/ Depreciation
Land, as you may guess, is always increasing in price. As population in the world continues to increase, and as more people continue to buy their own pieces of land, the commodity continues to gain value on account of its being limited. Therefore, you can be sure that land will always increase in value, unless your piece is in a quarantined area such as the Lambwe valley where there are tsetse flies.
The case is different for a car. Cars depreciate over time. Statistics show that the worth of a car decreases by 10% after its first year of use. The value of the car, unless a vintage edition, continues to depreciate as years go by.
A car depreciates in value also due to technological advancements. As each day passes, car manufacturers are always pushing to create better cars that are faster, safer, and more energy efficient. This means that in the next few years, your car might be totally outdated and might not fetch a great value on its resale.
Is Buying Land the Best Deal of the Two?
As you all know, it is advantageous to buy a commodity whose demand is higher than its supply. As the world population increases, the availability of land continues to decrease as time progresses. Land is a critical resource, which unlike cars, is not manufactured. There will always be a new car model tomorrow, but land continues to diminish as time progresses.
Although a car has its unmatched benefits such as reduced transportation costs, the convenience, and status, it is likely that you will never get value on its resale a few years after using it.
Land is by far the best way to go when considering the diminishing value that a car presents to you. Age is however a factor in the question of whether to buy land or a car.
If you are young, they say that you ought to make hay while the sun shines. Buy land, which is an investment that will assure you of a great value in the future. Property investments offer you a great deal for your life and you can always resell the piece of land for a higher value, or settle on the piece of land.
However, if you are past the age of raising your children, then a car should come in handy for the convenience of getting by in life. Do not buy land for the sake of your children. They will be in a position to handle their own lives when the time is right. Buy a car that will help you move about without cramming for buses with younger people.
While looking to buy land, prime property gains value faster than property that is not on prime locations. With enough cash, you can buy property on prime areas and you will be sure of an almost double value in the case of a few years. If you have the financial muscle, you can also go for a piece of land that is already developed.
Often, land in urban areas might be on sale with a house on it. Resellers often consider it cheaper to sell the land with the house on it, rather than demolishing the property. This is because most people have a sentimental attachment to their piece of property and the cost of demolishing is prohibitive.
It is hard to weigh the importance of having a piece of land versus owning a car. The two properties have a mutually exclusive comparison status, as both are a necessity in the life we are living today.
- You can consider a piece of land as a long-term investment asset that appreciates with time.
- A car is a necessity that provides a short-term asset value that depreciates with time.
- Both of the discussed items are not cheap to own and will require an immense effort in saving up to buy.
In conclusion, it is important for me to leave the choice up to you. You might have found your answer in the course of the article with all the information we provided. However, it is important that you weigh your options, desires, and capabilities. Whichever is more important to you, you can always go for it first while you save up for the other one. Although buying a piece of land seems more lucrative and value-driven, a car is an unnecessary expense that will help a lot in managing your life.’
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