Quote:
Originally Posted by SonicFlyer
This is a horrible way of thinking for several reasons. And lots of people make this mistake.
Unless you're in the business of real estate, a primary residence should not be thought of as an investment, but as a consumer item. Investments generate revenue (like a business). Homes usually appreciate over time, but not as much as the market does. And in some areas they actually decrease in value.
You're best off buying the cheapest home you can afford and then properly investing everything else you would have otherwise spent into the market over the long term. That is rock solid... except of course in a situation where there is nuclear war, a complete societal collapse, etc.
Depends if it’s a short or long term home.
Long term you should be able to sell at a profit which is partially negated by interest paid and inflation. If you’ve paid $100k in interest that may be difficult to recoup hence an early pay off. Rental income on a paid off home for about 8-10 years should cover the interest paid.
I follow your reasoning but
nobody buys the cheapest home they can afford.
Buy a home outright no mortgage, need money to make money.