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
Depending on the interest rate environment, it may be preferable to invest your money in the financial market, instead of paying off the mortgage. I.e. the interest you pay may be much lower than the return you can achieve on your assets.
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