What is the point of buying a house when you end up paying double for it from interest after 30 years?
Im kinda stumped. I asked chat gpt this question. Question - if i buy a house for 1 million and put 200k for the down payment, at a fixed rate of 7% for 30 years, how much interest would i have paid total? Chat Gpt Answer - To calculate the total interest paid over 30 years on a $800,000 loan at 7% fixed rate, you can use the formula for amortization. It's a bit complex to do without a calculator, but roughly, the total interest paid would be around $927,514. This includes both the down payment and the interest accrued over the 30-year period. So total i would be paying near $2 million, whats the point? #housing #sanfrancisco
When interest rates are high, the optimal thing to do is to be a lender, not a borrower. Collect that interest from someone else working and paying.
Propoerty which is 800k now will not be $800k after 30 years
Except Seattle around and Bay area, housing doesnât appreciate much
but if you keep same amount of money in stock market you will get much higher gains. Also money given in taxes,hoa & interest is down the drain
Refinance as many times as you need to. And then pay two times the principal in each payment. Get out as fast as you can.
The âpointâ is that at the end of 30 yrs that houseâs fair market value would be 8MN, assuming that value doubles every ~10yrs
It'll double once every 72 years on average before taxes/insurance/maintenance.
Youâre speaking to the wrong crowd TCâs here are commonly $500k+
7% rate sucks
OP What's your other option?
did you ask chatgpt that question?
It makes no sense for poor people. If you have money, it makes sense. Probably all gap employees are renting hence you dont see buying a house makes sense. Just dont be poor? Have you tried that?
Refinance
You assume rates will go down đ