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
The value of the home is very likely to go up over time, so when you sell it you make money.
Not fully paying it off is completely irrelevant here and quite simply doesn’t matter.
If you buy a home for 100k and then you are able to sell it for 200k in the future you made 100k. Having outstanding loan doesn’t change anything, in what way do you think it would?
There’s a bunch of other potential benefits of owning a home but they all kind of come back to “homes go up in value, its good to own things that go up in value”
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