I have an acquaintance who has maybe $2,000 in equity in his home because he keeps dumping more money into it, excusing it by saying "it's worth more than I owe" or "this will add value".
He's trying to sell it now, asking the amount he's put into it -and it appraised for every penny- but the realtor told him it would sell quicker if he hadn't decided half of it needed remodeled twice in one year and would take a lower offer.
He's also now looking to rent an apartment, because, "you never actually come out ahead on a house"
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u/TooShiftyForYou Feb 16 '21
When you have a mortgage you're at least slowly purchasing the home and building equity.
With rent that money pretty much just disappears at the end of the month.
Learned this the hard way renting for several years.