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| Topic | I'm starting to wonder what the point of owning a house in middle-age is. |
| CapnMuffin 12/17/18 6:38:48 AM #15: | The family you described is exactly someone who should own a home. With children youre less likely to move and will most likely have large costs (education, etc) so you may as well be building equity. You can borrow against your equity with a bank for a very low interest rate (probably slightly higher than prime). And if you ever do eventually move that equity becomes cash in your pocket. Depending on how home values and the market went when you buy/sell you can get quite the return on your investment. Take the first home I bought for example. Got it for 175,000. It appraised for 195,000. I made $20K right off the bat. We made some improvements (perhaps $3-4K) and sold it 5 years later for 215,000. So 40K in profit minus improvement and maintenance costs. Not too shabby of a return. If Im really generous with maintenance costs and even throw on interest I paid to the bank Id say 20K in net profit at least, simply by utilizing my credit to purchase instead of rent. TL;DR: Build and take advantage of equity if you plan to live in a home for enough years to at least benefit from turns in the real estate market. --- "its okay a lizard ate me and elucidated my fate" - MJ_Max on Dark Souls 3DSFC : 0860-3930-2170 | NNID : CapnMuffin | XBGT : Capn Muffin ... Copied to Clipboard! |
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