thing is, if you buy a 100k house and sell for say 120k after 2 years, then wont 120k only get you the equivalent of your house again? And the cycle goes on
Technically no. You'll be paying down the balance on your current loan so you'll have equity plus the amount you've paid. Also if you're used to renting, you're used to paying more monthly which you could take that extra money and pay down debt or add to your home loan. Also if you're getting a raise on your job you'll have a better debt to income ratio when you get ready to buy again. While yes, home prices will increase more than likely, your debt should be coming down which allows you to purchase more.
I bought my house in 2015 for 130k. Today we’re looking to sell it for 400k. I only owe 115k on the mortgage so after the sale I’ll have 270k +\- in cash to put down on a new home. It’s all about the down payment with the stepping approach he’s talking about! Totally works. I’m proof.
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I got a lot of ideas to put for my persuasive speech, thanks for this !
Glad it was helpful!
HELOCs are amazing, Ive actually used them to use them as a downpayment for a second rental before its a great way to snowball your portfolio
Absolutely!!
This is so true.
Thanks for watching!
thing is, if you buy a 100k house and sell for say 120k after 2 years, then wont 120k only get you the equivalent of your house again?
And the cycle goes on
Technically no. You'll be paying down the balance on your current loan so you'll have equity plus the amount you've paid. Also if you're used to renting, you're used to paying more monthly which you could take that extra money and pay down debt or add to your home loan. Also if you're getting a raise on your job you'll have a better debt to income ratio when you get ready to buy again. While yes, home prices will increase more than likely, your debt should be coming down which allows you to purchase more.
I bought my house in 2015 for 130k. Today we’re looking to sell it for 400k. I only owe 115k on the mortgage so after the sale I’ll have 270k +\- in cash to put down on a new home. It’s all about the down payment with the stepping approach he’s talking about! Totally works. I’m proof.