Ahh, but in 30 years, $1.6M will have the purchasing power of less than the $784,000 of 4 years ago.
⚡️🇺🇸 WATCH - An American buys a $784,000 home with a $5,700 monthly mortgage.
After 4 years and $285,000 paid, only $50k hits the principal.
$230,000 is PURE interest.
Over 30 years she’ll pay $1.6M for a $784k house. This isn’t “homeownership” — it’s usury.
https://blossom.primal.net/756574e99f0794ec4f056ebdbe316ffbec2106757064eac7be59b4e70a9c73f7.mp4
Discussion
Well put. The issue isn’t the interest amount, it is maintaining a low interest rate across the life of the mortgage, being able to afford the payments, and hoping that the asset’s value increases at a rate higher than inflation.
Historically, these factors have all worked out for the buyer.