RE: Real Estate: Asset vs illusion
A 🏡house/condo/townhouse are investments. If you purchase a home and you decide to stay in that home for most of your life then at least after it's payed off (It doesn't have to take 30yrs to pay off) you have no payments (Easier retirement). If you decide not to stay then it can be rented out and you have residual income.
You can cut the 30yrs mortgage by like 5 to 7 yrs just by splitting the monthly payments by half (No extra payments out of pocket). Instead of paying once a month, you cut the monthly payment in half and pay twice a month. Exp: $1000 monthy mortgage payments to $500 every two weeks. By doing that the interest is lower. You'll pay a lot less after paying off home. Also consistent extra payments or paying more of the agreed monthly amount will drastically reduce final price and/or amount of time it takes to pay off.
Most of mortgage cost is interest. A $100,000 house would be about $300,000 in 30yrs mortgage, so the faster it's payed off the more savings it's earned. Yup... rip off. 🏡 🏡 🏡
Yeah i understand what you mean. But to look at it from another point of view, the amount of extra payments which i use to pay out the mortgage loan faster could have been invested and earn more. So its kind of a balancing act. Well i guess money is the root of most evil but yet it is a necessity. what irony.
I understand what you are saying and it is true that perhaps with correct investment porfolio much profit can be gained but also everybody needs a place to stay and it's not free (Often times rent is more than mortgage because all of home cost plus profit). That money to stay somewhere is going to be spent for rent or mortgage no matter what, unless people stay with parents or family and they don't charge rent which usually is for a limited time.
The love of money is the root of all evil.
Well your last sentence says it all. lol.
On that last sentence, I stated that because often times is miss quoted as "Money is the root of evil" in which the true quote is "The love of money is the root of evil". They each have different meaning. "Money is the root of evil" is stating that money itself is root of evil. "The love of money is the root of evil" is stating that loving money is the root of evil (Greed). That misinterpretation can effect someone life in several ways by seeing money as evil instead of the love of money being evil.
Ah i see what you mean. Since money is just a thing, Money can't be evil unless our desire (greed) of it makes us think that money is evil. Nice. Thanks for showing the clarity.
Anytime... I once thought that too since most people including church going people and pastors would say that while growing up but I gained clarity once I read the scriptures for myself without external influences.