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
> and then die and the bank takes over.
That’s doing it wrong.
Real-estate has value because it’s “real”. Tangible. Unlike stocks that are more speculative and can just go *poof* and lose value overnight. You can do things with real estate that has lasting effect. Buying a home, and paying off your mortgage means you can pass that real thing to your heirs, and they have a platform upon which to build more wealth.
To put it even more ELI5’y: If you didn’t have to pay rent for 20 or 30 years because you inherited a place to live from your ancestors, wouldn’t you be better off?
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