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 depends on the area, but depending on how soon you sell the house, there may be additional taxes/penalties.
Now, if you’re doing this as a conscious financial decision. you can counter for it with planning to remain there long enough (this will vary by location) and choosing areas where it would be likely not that difficult to sell the property. For example, where I am the property values never drop, only slow in growth when the market gets bad and homes often sell before their listings go live. This would be a lower risk location compared to a place where it could be on the market for months and possibly sell at a loss.
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