It’s also more likely that you’ll feel good about spending money to improve the home if you think you can get the money back when you sell. (And then you get to live in a more pleasant place for years)
It’s also more likely that you’ll feel good about spending money to improve the home if you think you can get the money back when you sell. (And then you get to live in a more pleasant place for years)
"Locking in" a rate for multiple decades is mostly (only?) an American thing:
* https://www.tandfonline.com/doi/full/10.1080/15214842.2020.1...
* https://www.investopedia.com/why-your-30-year-mortgage-exist...
* https://www.cnbc.com/2024/05/07/why-the-30-year-fixed-rate-m...
* https://www.deeded.ca/blog/why-canada-doesnt-have-30-year-fi...
While a ≥20 year amortization period is common, the mortgage term is generally shorter (2-5, 10 years) is most other places.
The downside of doing that is you end up "locked in" to the property too. They now have a strong disincentive to sell, because they'll lose that sweet sweet interest rate and relatively low payment. I'm unsure what the broader effect is on the market.
Everybody is so obsessed with squeezing out the maximum amount of money from everything, it's exhausting.
Guessing what your yearly house-owning costs will be, and what the market will be when you sell, is in the realm of crystal ball scrying. Sure, you might be able to guess "reasonable" estimates, but individual instances aren't necessarily near the mean value.
Or, hear me out: buy low and rent high.