Time is the one thing that can never be retrieved. One may lose and regain a friend; one may lose and regain money; opportunity once spurned may come again; but the hours that are lost in idleness can never be brought back to be used in gainful pursuits. Most careers are made or marred in the hours after supper. - C. R. Lawton
This year, April and I planned to save up money for a lot in our place. Computing everything, I told her that probably around December of this year we may pay it off completely. We are talking about securing a deposit already in the past, however, if we do so our budget will not be enough to cover our living expenses.
The plan was to use the credit card that was issued under my name, then build my credit rating, and then get a loan for the lot. Until I got a phone call from the local bank informing me I was eligible for a loan of 0.049% APR.
I told them at first that I am not that interested as I have other plans and they mentioned they will call me a week after seeing if I have decided completely to ignore the offer.
They heard the hesitation in my voice.
Which is true. Phone bankers can feel what their customers do on the other line, as I am also at one point just like them.
April and I talked about workable plans 0.49% APR is just a small amount per se as we can use the money for other stuff.
I asked if she has any business ideas that she can think of and mentioned that she is not sure.
And then she said, how about paying for the lot? At the very least we can cover 25% of it and then have it paid off prior to the end of the year.
I agreed and told her it was a good idea. The developer also allows the future owner to build their own homes on the lot as long as I have paid already a certain amount.
Probably we can start buying some materials after she said.
We talked it over to the secretary and, to our surprise, the price of the lot already doubled.
We asked for a reason there's such an increase and we were told that the road construction will take place this summer and lights together with other amenities will be erected as well. They are just waiting for the rain to stop as it is still raining for the past few days, but once summer officially started, construction will start.
How does the time value of money affect investment decisions?
Now in this scenario, April and I talked over whether we will still save up money and pay the lot in one go or try to secure the deposit and then pay in monthly amortization.
The timing value already affected our investment decision as we agreed that once the bank calls again, I will grab the offer and then just pay off everything hopefully prior to the year-end.
We are afraid that if we will wait again, most likely the price will increase without prior notice. As more people try to migrate into rural areas such as ours because of the laid-back lifestyle cost of everything increases exponentially.
Why not look for a cheaper location then?
The location is quite near to my in-laws, probably 20 mins walk, but it is the cheapest around the area already. Plus, the developer will handle the paperwork until the change of name in the title.
Government stuff takes time and is inconvenient. You go back and forth, thus wasting time on such activity. If someone can do it for you at an extra cost just do it on your behalf.
With that said, I might do a lot of stuff double time nowadays. The loan will start by May this year and I just hope that everything will be well at that time then.
The plan will remain the same here in Hive. Keep on increasing Hive Power and Hive without withdrawing my funds eventually.
Wes...