Kivisild.net

In time we will always (or have already) move from parents home, to our new place. It could be a house, an apartment, a room in apartment, whatever, but this is our new home, our own territory.

So in this situation, quite often interesting question arises, whether to rent the apartment, or to buy one?

I will overview this situation from the bank loan view for the apartment buying, that would be much interesting, and i think, more close to reality.

Prices

I live in Estonia. All operations will be in US dollars, but converted from prices in Estonia.
$1 ~ 10 EEK

The average 2- 3 room apartment (50 -70 square meters) costs now around or $100 000.

The average rent for the same flat is around $400 in a month.

Bank Loan

Loan interest= 5%

The interest is dynamically calculated, depending on economics and the sum you still need to pay back. The longer the period- the bigger the sum will be, that you pay back.

For example:

If you take a loan where interest is 5%. And we need $100 000.

It is easily to notice, how much the interest is getting bigger, depending on for how long you have taken the loan.

Bank loan VS rent

So, the interesting part. I will assume the bank loan will be taken for 20 years. I must explain. In Estonia an average salary per person was around $1200 in a month. Now it is much smaller, because of the world financial crisis. If family has 2 adults, so they can manage to live nicely, paying the loan.

Conclusion

My personal opinion is. Buy a flat.

If you are not planing to go back to you parents home and have enough money, or wherever, but the apartment, or house. If you look at those tables, you can see how much money you will simply give away to somebody. It is like buying air balloons- they are nice, but useless.

The rented apartment does not belong to you, the owner can decide to throw you out (yes, and sometimes they give few days only to pack your stuff). You can not do anything inside (for example drilling a hole in a wall to hang a picture), and so on…

But when having a loan, you are the owner! You can do anything to you place, and this will be something like investing (7 years ago it was called an investment- to buy a flat).

And look around, the world financial crisis has dropped the prices way down!

What do you think?

We are surrounded by zillions of activities every day and it is normal not to  pay attention to ourselves.

But have you noticed this: when you come home after work, you turn on your PC, and while it is booting, you will be changing clothes, going to shower, turn on TV. Or remake it to fit yourself. The point is in time. We are not waiting until the PC starts, the tea gets colder, microwave heats up something to eat…

Why are we acting so strange? Why can`t we just sit down, relax and wait? Always in hurry to save the World, to get maximum from the 24 hours.

Because the time is changing, we must be in action not to loose our grip on life, or it will pass by, without us. We want to be better than others, so we have to develop ourselves. And it does not matter where, in sports or politics, we programmed our minds to work hard. I totally understand and agree, at some points.

Unfortunately, a lot of us are not sparing themselves. We can work for 16 hours a day, that is nice, but for how long? After few weeks we will become exausted, but this is not a problem. Our mind will be damaged. What will average think? “I tried so hard, and I failed. I am a looser”- or something like that. We will be not so confident in ourselves anymore. And in few such ‘non-stop-activities’ faith is lost. And now even small problems are becoming huge.

Just try to relax. Sometimes it is good to stop, look what is done, analyze it, and then, move forwards. It is like journey. What will you choose, analyze the map of journey,  loosing few hours but knowing what is ahead. Or rushing towards the future, and finding yourself falling from the cliff you did not notice?

Panic, world crisis has reached us. We are all doomed.

But wait, is everything really so bad? I don’t think so.

I would like to devote this article for those, who do not own businesses (here really not everything is good), but for everybody else. Who goes to work, who has dreams and family.

Look around! Because of the crisis:

• Prices for cars went down a lot! If you were planning to but a car, now is this moment to to that. Not only the buying will be cheaper, there will be some extras included (for example, alloy wheels, or xenon lights). In Estonia, the car dealers have a lot of offers. For example, if you would buy a Toyota Land Cruiser, you will receive small Toyota Yaris for free!

• Real estate. Prices down also. In Estonia, around 20%. Thinking about new flat, get one! But the banks will like to have 20%, 30% from price to be payed at once…

• Cheaper holidays! But we aware, it could be that in final destination you will stay for longer that you planned…

• But shares of good companies for really cheap price! I think this is the greatest possibility.

• Cheaper electronics, goods, furniture, and so on.

There are a lot of other examples. The crisis is a normal happening, and a great possibility. You should always look around the corner and act otherwise as the crowd. But do not forget to use your head, please.

Hey there.

I am very sorry not writing for a long time. Had some reasons.

Would like to share something personal, this is a blog, remember, personal blog.

At first! New 2009 has arrived! Yeah! Second, I have a new job. Third, i must begin to write my science work…

Now I am, I think, pure PHP programmer.  After 10 month of work in a small, but family like company, decided to change my workplace. Why? We always must be in a movement. The only thing i do not like, is to get up at 7:30 am. It is not so early, and the problem is not that I want to sleep. It is still so dark outside. And people, like zombies, going to work, to spend there 8 hours a day, 40 years of life.

I thought a little bit overhere. What would you better do, sit at home, thinking and developing your genious idea, or goind to work for 8 hours a day? Personally I think, that we should be working, until we have not our own business. But not working for 8 hours a day, a little bit less. Please, listen, i will try to explain.

Of course, we all must work, because we have to pay for house/apartement/car/university and so on. But! Working for somebody else, that will not change anything to you. You will be so exausted by that, so in the evening you would rather watch TV, than reading and developing yourself… Think about it. Do not waste your life, try as hard as you can to be independent.

I will explain everything more seriously, but for the end, some numbers.

I live in Estonia, average salary around 11 000.- eek.

1.- USD dollar  ~ 11.- eek

For our 40 years(until the pension?), working 8 hours a day, we will earn:

12 * 11 000 = 132 000.- eek in a Year

132 000 * 40 (years) = 5 280 000.- eek  This is around $480 000.-

This is a very small sum. Only 480k. Meaning you are not eating, buying anythig, going out. Are you satisfied with it?

This nice Lambo costs around $330 000.- You really want to work for someone, or at least try to do something?

Marketing is a very wide discipline. But everything what we know can be easily made more simple. I will try to explain few marketing tips.

Marketing is all about selling. This area of activity starts to work when consumer starts to think about new buying.
All the process can be easily divided into 5 parts. I have described each one a little bit.

1. Recognition of a problem
Reason for getting new stuff always differs, but the result is one- buying something, whether you need a new sofa (old one broke) or want to impress your neighbors.
Example. You have hammer in garage, simple, with rubberized handle. Then you notice an advertisement about new patented hummer with titanium handle and with super fit. You can would like to buy it, but to you really need?

2. Information search
I think biggest part of humanity think before buy, at least I hope so. So they are reading reviews, asking friends, colleagues. Person want to know maximum about product. Is it good, what about the quality and so on.
Example. You TV is getting old? Our new Super- Plasma ultra- thin TV gives you superb quality and immense sound. Sounds familiar to you, right?

3. Viewing alternatives
After product is selected, consumers start to search for alternatives. For example, if there is any other HD TV with similar specs but cheaper?
Example. Looking for a new car? Check grand new Kia SuperPricless. Engine 1,4 liters, interior from unique blue plastic, and car wheels included in price!

4. Deciding
Here consumers decide, do they really need this product or not. Maybe all that was emotions, and the do not need a new Lambo in the garage, because they already have Veyron.
Example. You still thinking about new house? Do not think, just buy! Our well trained brokers will suck out all money what you own. And the loan interest is only 25%!

5. Bought stuff appraisement
The product is in your hands, time has come enjoy it fully. Did it suit you, or there are some things you would like to change?
Example. Not satisfied with your new buying? We will buy it back and make some discount personally for YOU in our store.

Those 5 topics describe all the way it takes consumer to buy something. And everywhere the marketing can be applied. I will not write how to act exactly in every situation, because it is so unique, and you all can make it yourself.