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Ramit Sethi: Investing Shouldn’t Be Your Identity

The Long View

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How to Calculate Your Homeownership Time Horizon

When we go to buy a house, they start throwing around all these words really fervently. Well, I'm building equity. How much equity are you building? Well, it's equity. In the first 10 years of homeownership, again, depending on location, cost, et cetera, you will often find that you are spending more simply paying interest than you are putting towards the principal. The longer you stay, the more that you'll be able to spread those costs, like peanut butter, spread them out over many years and make equity buildup actually possible.

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