We bought five years early to take advantage of leverage.
Let's say a 300k home, 20% down. 8k in misc costs and 4k annually in costs not covered by renters. Three years advance purchase.
80k all in. 300k with 5% annual housing price increases = 347k home. 47k appreciation on 80k investment in three years.
Yes, yes, yes! There are risks, it can be a hassle, housing costs might not increase 5%, nor am I including the principal reduction. No I am not including opportunity costs of the 80k expenses. The point is leverage can work handsomely for the OP.
It has worked well for us. Renting can be easily handled and does not require hiring a property manager with the associated 17% commission on rent.
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