Quote:
Originally Posted by nixiak
When you buy a property, you build equity when you pay monthly mortgage
When you own and rent out a property, you build equity when your tenants pay the monthly mortgage for you.
When you rent a property, you help your landlord build equity.
No right or wrong, it depends on your needs and which phase of life you are in and what is your plan if you choose to rent a property.
Disclaimer: I'm not a real estate agent
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That is utter rubbish. You don't build equity when you pay down your mortgage, you are simply paying down your loan. I mean you wouldn't say you "build equity when you pay down your personal loan", do you? So why is paying down a mortgage loan different? That you assume the value of your property is only going 1 way i.e. up?
Don't forget to factor in other cost of buying a house like property tax, absd, lawyer fees, disbursement fees, valuer fees, agent fees, insurance fees, increasing facility fee and sinking fund, maintenance and servicing fees, replacement of appliances cost, etc. Add it all and you will soon find it is more cost effective to just rent instead.