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
It was never because you won’t live there long enough to pay off the mortgage. The general rule was not to buy if you weren’t going to live in the place for at least 5 years. This is because mortgages load fees and interest into the loan and properties don’t appreciate in value quickly enough for you to break even or make money on a sale after only 5 years. Essentially, if you buy and then sell within 5 years, you lose money on the deal.
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