Loans Kill Legacies Before They Grow

Homeownership involves more than just buying property – it is about building a legacy and, generational wealth.

It is about creating a stable future for yourself, and, most importantly, for your children, for your family.

Yet, time and again, I see so many of my clients lose their chance at homeownership because of decisions that could have been avoided – especially when it comes to high interest cash loans.

Let me share a recent story that broke my heart.

I was working with a client, a kind and dedicated husband and father, a government employee who dreamed of owning a home near his children’s school.

We worked hard to secure approval for his dream home, and just before the festive season, we got it. Everything was ready.

But after the holidays, when it was time to move forward with the bond and transfer attorneys, the bank informed me that due to unusual activities on his account, they reassessed his application.

Why? Because he had taken out two quick loans in the meantime – one to pay for his children’s schoolbooks and stationery. That single decision slashed his buying power in half.

He could no longer afford the property we fought so hard to get, and we lost the deal. That man did what any loving father would do – he prioritised his children’s immediate needs.

But in doing so, he unknowingly jeopardised their long-term security.

You see, if he had secured the home, he would have automatically had life cover tied to his home loan bond.

And if anything were to happen to him, that policy would have paid off the house and his children would have had a permanent home – no rent, and no risk of displacement.

That’s the power of homeownership. It is not just about you – it is about what you leave behind, having something that will outlive you.

We must understand the dfference between good debt and bad debt. Good debt builds you up – it buys you assets like property and government bonds that can grow in value. Bad debt tears you down – it funds consumption, often with high interest, like quick loans, store furniture accounts, or taking out credit for funerals or short-term pleasures.

Robert Kiyosaki says it best: The rich use debt to get richer, while the poor use debt to appear rich. A car, for example, loses value the minute you drive it off the lot. A home, however, appreciates over time. Not that having a car is a bad thing, it is one of the best things to have, but I’m referring to prioritising here, prioritise a home, build credit, then prioritise a vehicle.

That is why, when I consult with clients, I do not just help sell and buy homes – I offer my clients strategies, life-changing strategies while they still have the chance. When possible, I advise clients to buy homes with enough yard space to build a flat or units to rent out to help them pay off their bond.

Or to buy apartments where they can live in one room and rent the other. Let your home help pay its own bond. That is smart homeownership.

Unfortunately, our banks have become stricter, and they monitor your financial behaviour even after pre-approval.

This means any small loan, even for what seems like a good reason in the moment, could totally disqualify you from owning your dream (or start-up) home.

It is important to sit down with someone who understands these processes – not your colleagues, not your cousin, but someone with real knowledge and adequate experience in the property sector. Look for someone who will tell you the truth, which will help you in the long-term.

I say this with love and experience: Owning a home is one of the best gifts you can give your children and/or family members.

Namibia has good legal structures in place to protect minors in the event of a parent’s death.

Your estate, including your home, will go through the High Court, and your children will be cared for. But only if you think smartly and have a home. Thinking beyond your life is building a legacy.

It is time to shift our thinking. Let us build legacies, not just lives, not just living in the moment and forgetting that even if you are not there, tomorrow still exists and you will leave loved ones behind.

Let us invest in assets that work for us now and later. If you are earning a stable income, especially as a government employee, do not wait.

Prioritise property now – before the danger zone of retirement creeps up or cash loans ruin your chances.

• Janny David is the founder and chief executive of Jay’Dor Real Estate, a property development company in Namibia.