7. It’s risk capital.
The definition of risk capital is the extra money that one has in order to invest in high-risk investment vehicles. Or money you can afford to lose. Instead of investing in a risky venture, stocks, etc. the money could be used in buying a home, improving a home, or buying an investment property. Housing continues to be a better investment over the long term AND instead of a house, you can call it “home”.
8. It’s forced savings.
Paying a monthly mortgage includes paying down the principal amount of the loan. In essence, this is forced savings. Historically, homes have appreciated over time and even with the housing “bubble” homes bought before the bubble of 2007-2008 have retained their value. Thus, paying a mortgage and its principal amount is factored in the proceeds when you sell your home.
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