Why do people buy houses they don’t plan to pay off? Most people don’t spend their entire lives paying off one house, so what is the financial benefit of getting a “starter home”? I’m new to the economics of real estate and I’ll take any wisdom offered.
In: Economics
Houses sit on land. Land is a commodity that is not increased. Outside of UAE, they ain’t making anymore. The demand will increase while the supply remains fixed, making it a safe investment.
A starter home is unlikely to cost more than rent for that particular size home, but rather than you just paying to live there, you will very likely get the money back if you move after some time.
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