Re:The housing market needs more condos
by nicbou on Sunday February 13, 2022 @03:13AM
(#30320156)
A part of your payments will indeed build equity, but over 30 years of payments, most of it won't (see previous comment).
If the market crashes, your house will not remain yours if you can't afford making payments. If things go south, I see unavoidable payments and illiquid assets as a liability, not an asset.
Selling is indeed tax-advantaged after a few years though. That's a good point.
The main pro for me is that it's a hedge against rent prices and inflation. However that's assuming that housing prices are reasonable, and that there are no better investments.
If the market crashes, your house will not remain yours if you can't afford making payments. If things go south, I see unavoidable payments and illiquid assets as a liability, not an asset.
Selling is indeed tax-advantaged after a few years though. That's a good point.
The main pro for me is that it's a hedge against rent prices and inflation. However that's assuming that housing prices are reasonable, and that there are no better investments.