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/biz/ - Business & Finance

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2226487 No.2226487 [Reply] [Original]

Can someone either correct in my head or confirm my thoughts on buying a home?

To me it seems like, aside from the money that goes into mortgage insurance, taxes, interest on the mortgage, etc, you're basically paying yourself.

If I get a mortgage and buy a $100,000 home and I pay, oh lets say $500 a month into the principal. That 500$ isnt going away from me, it's just going into the equity of my home... so I'm not LOSING that money. Right? Because lets say I sell my house after 5 years and still owe 85,000 on it but the house hasnt dropped in value and I can still sell for 100k... that means I basically just have been banking that money.

So essentially you're just paying rent to yourself?

>> No.2226533

>>2226487
yes

>> No.2226578
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2226578

>>2226487

Correct OP. You're not as retarded as you think you are.

>> No.2226589

Your'e assuming in 5 years that property values remain at or above the price you bought them for, and also that the liability (which you don't own), doesn't depreciate or get destroyed somehow. Plus interest. Lots and lots of interest.

>> No.2226636

yes

>> No.2226787

>>2226487
-maintenance
-getting old-renovation
-the fact, that over hundred years in the US house prices developed equal to inflation, so recent price gains may well be unsustainable.