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
Because the first couple years you are paying off mostly interest so you aren’t getting much equity. Equity is how much of your property you own if you sell.
Add in when you sell, now you need to pay lawyer/closing fees and most likely commissions,and penalties for ending your mortgage early.
Now if you sell and don’t own any equity or the place didnt appreciate in value over the couple years, all that money comes out of your pocket.
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