The price of real estate generally rises over time. This is both a good and bad thing. It’s actually a good thing and bad thing for different people.
It’s bad for people who rent. This is because their rent will continue to increase. Renter has no equity. If a renter lives in the same place for 10 years they cannot sell it at the end. They simply move on.
Rises home prices are good for those who own homes and have a mortgage. If a homeowner lives in the same place for 10 years they can sell it after. But there’s a difference with the owner. They are going to get paid! And they are probably going to get a paid a lot. We might be talking tens of thousands of dollar here or more.
The only negative thing about being a homeowner is taxes. Over time, property taxes increase. However, the tax increase is far outdone by the money the homeowner will keep from owning property. The great thing about property taxes, if there was ever a great thing about taxes, is that property taxes are tax deductible. That’s great! Another part of deducting home expenses is even more important. The interest on a mortgage is tax deductible. That means the homeowner might be saving thousands of dollars each year by owning instead of renting!
Home ownership is part of the American dream. However, most people don’t start out that way. I rented for years before I became a homeowner. Many people share the same path me. And that’s alright. The important part is to strive and have a goal towards ownership. This will pay off most of all in retirement. Imagine not having a rent or mortgage payment. That’s my personal goal! I want to spend my extra money traveling, not paying rent!