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In reply to the discussion: Is Buying a House Still the Best Way to Build Wealth? [View all]Johonny
(20,610 posts)97. You could sell that house and make 20K
but as you said the market is up. Meaning everything you could buy is also up. Unless you down grade or move to a condo you are essentially talking about money you are leaving after you go away. This is the problem many people I know are facing. They have indeed made paper money of 100,000s $. But if they sell there house where do they live? Every equivalent house in the area is roughly the same. Sure some people plan to retire to a "cheap" place to live out of state and some will leave the money to their kids, but essentially it is the main problem with think the house your living in is an investment. If yous ell that investment... where do you live?
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to build wealth for the lender from the thousands of almost pure interest payments.
Sunlei
Feb 2015
#1
mortgages are front loaded for interest. the majority of the first many years are interest payments.
Sunlei
Feb 2015
#13
did that but put no money down at all. Lenders handed out mortgages like candy & I took advantage!
Sunlei
Feb 2015
#54
I'm glad you got a good deal. The neighborhood would have changed either way, so it's good
merrily
Feb 2015
#23
They would have had no equity with that price drop even if they had put 20% down.
Gormy Cuss
Feb 2015
#24
I wouldn't sell a home that is paid for. Rent it for retirement or general income.
Sunlei
Feb 2015
#42
The strategic reason to buy property with interest-only loans is that you don't tie up your cash
Gormy Cuss
Feb 2015
#26
It is still the best way, they are not making any more land. Well they are but not on that large of
ChosenUnWisely
Feb 2015
#31
like everything else the housing market's been "financialized": suburbs aren't built for housing for
MisterP
Feb 2015
#55
If they're at that kind of place in their lives where they can manage to do that without issue, then
MADem
Feb 2015
#68
There really are so many factors that can weigh heavily for, or against, buying a home
Lex
Feb 2015
#51
Probably is at least an effective defense against poverty in old age...If you can pay it off
TheKentuckian
Feb 2015
#90
It all depends on the circumstances. We encouraged our daughter and son-in-law to buy
pnwmom
Feb 2015
#91
How is home owership supposed to make up for "dwindling pensions and stagnant wages"
Matariki
Feb 2015
#92