2 ms·
Well housing is a good investment once you pay it off and stay in that home for an extended period of time. The problem is people just want buy ever larger home
by vparikh 8y ago
Well housing is a good investment once you pay it off and stay in that home for an extended period of time. The problem is people just want buy ever larger homes. I mean look at the average square footage of homes in the 1970s which was 1500 sqft and by 2014 its 2,657 sqft (https://247wallst.com/special-report/2016/05/25/the-size-of-a-home-the-year-you-were-born/11/ https://247wallst.com/special-report/2016/05/25/the-size-of-...). People are buying way over their means.
I purchased a 1800 sq ft home when I was 22 that I am still living in today (I am 45) with a 15 year fixed mortgage. I paid the mortgage off and have lived rent/mortgage free for the past 8 years. Assuming I live here for another 12 years, that will be 20 years of rent/mortgage free living. And yes I am married and have a 2 year old.
And when I do eventually sell, I will get back all the interest I paid and then some even adjusted for inflation. The problem is people just keep jumping int every larger homes. As soon as they can.