Comment 121152

By KevinLove (registered) | Posted April 07, 2017 at 19:16:46 in reply to Comment 121148

When I buy a house I accumulate equity and I expect its value to appreciate.

Reality has a nasty habit of disappointing such expectations. The real estate crashes of 1989 and 2008 provide good examples of that.

when I start a business or buy a house I take immediate delivery and the costs to own and operate are known at the time of purchase.

Perhaps, but I doubt if you know what those costs will be in the year 2024.

Edit: When you sign your mortgage you know what your payments will be 30 years out as well.

Good luck finding a bank that will lock in the interest rate for 30 years. For example, the Bank of Montreal will not fix the mortgage rate for longer than 7 years. Which, by the way, takes us to 2024. If interest rates go up, so does your mortgage payment.

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