You don’t even need to be a Boomer for this to be true. I’m 38. The only reason my partner and I own a house as nice as the one we currently do is because I got on the property market pretty early. I was in a place to buy a cheap town home in 2012. I put $3k down on an FHA mortgage on a $92k townhouse, and that got me out of renting. I’ve made plenty of extra payments over the years, even paid the mortgage on that townhouse twice. Since then I got married, and we moved across the country.
But yeah, we recently moved into our third home (we own only one home.) And we bought it for $600k with $400k down. Some of that is from ordinary principal payments. Some from early payments. But the vast majority of that $600k was from simple price appreciation. We bought at the bottom of the market and have rode it all the way up. And yeah, there is no way we could afford our current place if we had to buy without that equity we’ve built up.
You don’t even need to be a Boomer for this to be true. I’m 38. The only reason my partner and I own a house as nice as the one we currently do is because I got on the property market pretty early. I was in a place to buy a cheap town home in 2012. I put $3k down on an FHA mortgage on a $92k townhouse, and that got me out of renting. I’ve made plenty of extra payments over the years, even paid the mortgage on that townhouse twice. Since then I got married, and we moved across the country.
But yeah, we recently moved into our third home (we own only one home.) And we bought it for $600k with $400k down. Some of that is from ordinary principal payments. Some from early payments. But the vast majority of that $600k was from simple price appreciation. We bought at the bottom of the market and have rode it all the way up. And yeah, there is no way we could afford our current place if we had to buy without that equity we’ve built up.