This is what gets me. The whole building equity thing by equating it to property. I have equity, but I invested it elsewhere. I still rent. You dont need to own property to have equity and to state otherwise is a disservice.
America is not all subdivisions and white picket fences...
You are confusing what the point of building equity in a home is. It's not solely an investment vehicle like stocks, bonds, options, commodities, etc. By building equity in a home, you are also eliminating your cost of rent.
>You dont need to own property to have equity and to state otherwise is a disservice.
Again, you do if you want your cost of housing to go towards building equity.
You're not eliminating your cost of rent, you're (maybe) lowering it. Whatever percentage of your housing costs go towards interest, property taxes, HOA fees, homeowner's insurance, mortgage insurance, etc. are not going towards equity. Especially early on in a mortgage, the vast majority of your housing expenses are not going towards equity. Your analysis is only correct late in a mortgage. Early in a mortgage it's entirely possible to be paying more in non-equity expenses than you would be if you were renting.
ars_technician|12 years ago
>You dont need to own property to have equity and to state otherwise is a disservice.
Again, you do if you want your cost of housing to go towards building equity.
nbouscal|12 years ago