Ashford W. Meikle, Staff Reporter
Assistant vice-president for operations at the Victoria Mutual Building Society (VMBS), Gavin Lowe, speaking at the 19th annual VMBS Marriage and the Family Series forum, held at Emancipation Park, New Kingston, last week.- WINSTON SILL / FREELANCE PHOTOGRAPHER
WHEN IT comes to providing shelter for yourself, your spouse or family, there are three options available renting, buying or building. And, according to assistant vice-president for operations at the Victoria Mutual Building Society (VMBS), Gavin Lowe, these options must be carefully examined before one makes a commitment.
"The greatest dream of most Jamaicans is to own a home which is vital for shelter and provides the family stability in order to grow," said Mr. Lowe while speaking at the VMBS's 19th annual 'Marriage and the Family' seminar at Emancipation Park in New Kingston.
However, while home ownership is important and is the goal of many, the executive cautioned that buying a home is "a big commitment and more expensive than most first-time buyers ever realize. You should have a clear idea of what you're getting into before you make a deposit. In addition to the 15 per cent you are required to find there are closing costs of approximately 10 per cent of the purchase cost."
Hence, one should explore the option of renting, which has two big advantages flexibility and costs.
FLEXIBILITY AND FREEDOM
"You're not really throwing money away when you pay rent to your landlord. You're exchanging it for a place to live. You're also getting flexibility and freedom things you sacrifice when you buy a home," advised Mr. Lowe.
The executive equated homeownership with marriage noting that "if your neighbourhood deteriorates or if you lose your job, you can just move with a month's notice." "Home ownership is more like marriage; renting is more like living together. Make sure you're wedded to a house before you propose to leave behind as a renter."
Another factor often overlooked is the costs associated with home ownership. "It's true that you may have to deal with rising rents and troublesome landlords. Homeowners, however, are often stuck with rising
property taxes, insurance and maintenance costs."
There is also the time factor involved and the process it takes to locate a buyer. "Moving when you own a home is
an expensive, time-consuming process. Finding a buyer can take months, except if you are in a high demand area, and you should bear in mind that selling costs will eat up about 20 per cent of your home's values, once you add the sale agent's commission, transfer costs and moving expenses."
Concluding his presentation on renting, Mr. Lowe reflected that, "Home ownership is not right for everyone. It may not be the right time in your life if you are single and close to retirement and do wish to take on the commitment and expenses associated with owning a home."
