I have this impression that it’s seen as a riskier decision to buy a home, knowing you won’t live in it long enough to pay off the mortgage and then sell it when you’re ready to move away, when compared to renting a home. Am I off base on that, and if so, why is this the case?
In: Economics
Among the other answers, don’t forget the value of your house may go down. What if you owe 400k on a house and can only sell it for 300k? Do you take the loss? Short sell? Foreclose? You could be screwed if you don’t buy and sell at the right time.
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