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This only makes sense if the market is flat-to-declining. Otherwise, for then a mostly flat market this is bad financially - when you pay your mortgage, you are
by sologoub 6y ago
This only makes sense if the market is flat-to-declining. Otherwise, for then a mostly flat market this is bad financially - when you pay your mortgage, you are also building equity. It’s a small amount initially, but the share grows over time as balance and the required interest shrink. Depending on if you took a 30 or a 15 year loan, the 10 years in one place would have either given you a decent amount of savings or a close to paid home. If you need to move, sell and take your equity less costs of sale, still better than just your rent deposit.
- ghaff 6y agoYes, but that 10 years was right out of my second grad degree and I had no savings (and a little debt). There's no way I was jumping right into buying a house/condo even if I wanted to, which I didn't. And housing was fairly flat where I was living at the time. I also just wouldn't have wanted the effort associated with a house at the time.
- kaybe 6y agoIn addition, at least here the taxes and fees add another 10 to 15 percent. If the house does not increase at least that much in value within the time you live in it you lose money, plus the trouble and work of buying and selling.
- deleted 6y ago[deleted]