this post was submitted on 02 Nov 2023
125 points (93.7% liked)
Personal Finance
3829 readers
2 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Repeat after me: it's okay to rent. Equity is not everything.
The downvotes are really depressing. My point is that we've been conditioned in America to focus solely on homeownership. The banks, title companies, realtors, and home contractors tout it as the American dream. No matter the personal cost--the down payment, the interest, the insurance, the maintenance--and no matter what negative externalities--sprawl, inefficient heating and cooling, increased infrastructure, car pollution, divorce and obesity from commuting--you must buy a house.
I get it. If your overriding concern in life is to maximize investment, then by all means pour your cash into a house.
I don't think you understand mortgages very well.
You know you can remortgage or sell your house before it's paid off, right?
If I pay in £500 a month. Likely, 20-80 of that goes to interest. I'm gaining £480 in equity each month.
Which I can gain access it at near any point with very little penalty.
You're focusing very blindly on your single point of "the deposit". Which is the hurdle everyone should focus on however possible.
What kind of amortization schedule is this based on? This seems completely divorced from reality.
It is. I bought my house two years ago with a low interest rate and it’s still another four years before I’m paying more money towards my principal than interest.