Ramit Sethi argues that buying a house doesn't automatically build wealth. You need to calculate opportunity costs, transaction costs, and maintenance expenses, which typically run 1-3% of the home's value annually. If you don't understand amortization schedules, you're not ready to buy.
Americans literally think of houses as a magical treasure chest. Put a little bit of money in, close it up, wait a few years, and then open it up and it's full of gold. What the fuck? When you buy a house, you better run the numbers. You better understand what opportunity cost is, what transaction costs are. You better understand, are you paying 1%, 2%, or 3% annually for maintenance every single year? You better understand amortization. If you don't know what the words I'm saying right now are, you're probably not ready to buy a house.
