why buying real estate is better than renting over the long term

brown and gray painted house in front of road

when you rent – you are paying someone else for staying in their property – no equity is being built – you are making someone else rich

when you buy real estate , you are building home equity and the homes appreciate over a long term

there have been exceptional cases when a home does not appreciate that much year or year – but you are in it for the long term

as long as you are staying in the home for 10 years at least , it makes sense to purchase it

plus there is the factor of leverage

suppose you have purchased the home for 100,000 with a down payment of , say 20 % – so 20,000

once the house appreciates to , say 120,000 the next year , your gain is 20,000 / 20,000 = 100 %

that is the power of leverage – it is like a lever that is used to pull large weights

there is the fact that real estate is forced saving – when you pay your home loans / mortgage , you are forced to make a saving

Leave a Reply