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
If you rent, you just pay out, and get housing. If you buy you get equity, the house, which holds value and also houses you. If the house value goes up well past the debt you have, you might be able to sell the house, pay off the loan, and come away with a gain.
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