Quit like a millionaire: no gimmicks, luck, or trust fund required by kristy shen and bryce leung12/8/2022 Still sounds like small potatoes, doesn't it? Well, in the immortal words of Samuel L. Read more: Deciding to buy a home instead of rent isn't always a question of simple math In some states, they have to pay a lawyer to do this for them, which is about $1,000. Then to register their purchase, they have to pay a title recording fee-$150. Buyers have to pay for a title search at their land registry office, which costs an average of $100. First, there are fees involved in the purchase. I did too, thinking, How much could that be? It costs money to buy, sell, finance, and appraise it, and to insure and maintain it each year, which we logically know but basically just dismiss when we're digging deep for that down payment. The problem is that owning a house costs money way beyond the purchase price. By the time that family sells they expect a nice fat check, and everyone is ecstatic! Awesome, right? If this were to happen, then over nine years a house purchased for $500,000 will increase to a value of $844,739, for a total gain of $344,739. Historically, housing tends to appreciate at the rate of inflation, but for the purposes of this example let's give housing a big boost and say that it increases at the same rate as the stock market, an average annual rate of 6%. Read more: A woman who studied 600 millionaires discovered where you choose to live has 2 effects on your ability to build wealth Let's see what happens to this average American family over these nine years.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |