Re: BRAG: Just got approved for a home mortgage
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Well, being that the down payment was his money already, when he sells and gets it back, we can't really count that as profit now can we?
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No, the downpayment is an asset used to purchase another asset. And, it lowers the monthly cost of the home.
Tell you what, you learn the difference between an asset and a liability, and then maybe we can continue this discussion.
The only way that buying a home is -EV is when you turn it around quickly and lose money (usually in real estate fees and other sales related costs). Occasionally you can lose money in the short run because of decreased market values, but this rarely occurs in the 7-10+ year long run.
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