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The illusion of paying down principal
In the first 5–7 years of an annuity payment, 80-90% of your installment goes toward paying interest to the bank, not the principal. You are effectively renting money from the bank, not building your own capital.
In a high interest rate environment, the bank takes the lion's share of profits from your "investment" project before you actually own any significant part of the apartment. You are paying for the right to use money, not for the square footage.
You are not investing in real estate; you are subsidizing bank profits.
#banks #mortgage #investing