Key lessons
- A house is not an investment, but rather a piggy bank with two favorable characteristics: its value grows on average with inflation and you cannot access the money in your piggy bank unless you sell your house. Thus, you cannot be tempted to use it.
- There are three basic mortgage forms, straight-line, annuity and grace-free. The most commonly chosen form for starter is annuity because the net charges are then lower at the beginning and increase over time.
- Your current and future financial situation determine which form is the best fit.
- Buying a house is expensive. Expect at least 6% of the purchase value as a cost.