Quote:
Originally Posted by Scanner
TO ADD:
In our total net worth and being 39.5 years old. . .I would say our equity in our house accounts for 60% of net worth.
(I am dismissing furniture and autos in tallying net worth)
How can you not label that an asset and just dismiss it from all of your financial planning?
Take away our house and you've taken away 60% of my wealth.
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I'm not sure I consider my home 100% an liability, but at best, I still think it is a feel good investment. Like steve said earlier, it's only an asset if you sell it. To our heirs it is an asset. But to use it as an investment for retirement, would seem like a huge mistake.
This brings up why I started this thread. I think it is wiser to buy much less house than you can afford until you have invested well enough to pay cash for your upgrade. People who buy homes stretching their budgets on a 30 year note, are compromising wealth building and their nest egg. In many cases, over buying on house, is only a step up from rent. When I think of renting, I would do it at a much lower monthly cost than I would the purchase of a home.
I bought my home on a 20 year note and right now between interest, insurance and taxes my home costs 768.00 per month, not a very good investment.