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Biggest of them all: interest. On a $1M mortgage, you’ll almost pay $2M as interest over 30 years even at 7%. Historically interest was never as low as during
by darth_avocado 2y ago
Biggest of them all: interest. On a $1M mortgage, you’ll almost pay $2M as interest over 30 years even at 7%.
Historically interest was never as low as during the pandemic. And most people bought houses using mortgages. The average “cost” of owning a house is much more than the selling price, even before you account for the upkeep.
- jajko 2y agoIn many places, this can be substracted from taxes, effectively slashing 35-40% of the cost where I live. So does almost all renovation costs (not upgrades though, just repairs). Also, where I live 7% wasn't the case in past 20 years, and even now its rather 1.5% + whatever bank puts on.
- bombcar 2y agoThe mortgage interest is one of the few costs that people (sometimes) account for. Usually with a hand-waving "my mortgage payment is lower or about the same as my rent payment" - which ignores that a rent payment covers everything whereas the mortgage payment only covers principal, interest (and sometimes insurance and property tax, if escrowed).