I see it stated a lot in social justice circles that the path to building ‘generational wealth’ is via home ownership, but having lived with homeowners, that doesn’t seem to make sense. From the outside it looks like something you throw money into for decades, and then die and the bank takes over. How does just having a mortgage start to accumulate wealth???
In: Economics
If the bank takes home they never finished buying the house. So it was lost.
This is actually a good example because if they owned the home outright when they died it would stay in the family. It is a family home that doesn’t have constant rent/mortgage payments meaning that the family has more of their income to use on other things. It has worth, and when you own the home and land it can always be sold if you don’t need it/really need the money.
This is how it creates generational wealth.
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