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Old 10-14-2009, 02:48 PM
 
8,204 posts, read 11,915,499 times
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Quote:
Originally Posted by mathjak107 View Post
you get the idea im trying to convey , a home is a consumption item. and its a lifetime of expenses as you always need a place to live..
Actually, no, I don't.

You're going to have housing costs whether you're renting or buying.

We're comparing the cost of renting vs. the cost of home ownership and whether it pays to "invest" in a house. (Even though you don't consider it an investment.)

So far I'm up about half a million dollars.

That's a pretty good non investment.
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Old 10-14-2009, 02:55 PM
 
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Folks the article is specific in who it is talking about. They are talking about people who have a very large portion of their net worth tied up in their housing equity. Even if their ownership costs have been high it is not about the value of investing in a house for retirement it is about the fact ok now here you are retired and the equity in your house exceeds your investments and you have a challenging cash flow.
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Old 10-14-2009, 02:58 PM
 
Location: Alaska
5,356 posts, read 16,349,090 times
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I've always thought of the house as part of the inheritance. Any proceeds will go to pay off final bills and the rest will be split between the kids. It's present and retirement function is to provide a roof over our heads.
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Old 10-14-2009, 02:58 PM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by mathjak107 View Post
i cant say it enough. the home you live in is NOT AN INVESTMENT.
the interest, taxes and expenses of a home are usually more then even the house appreciates to by the time the mortgage is payed off. the fact it has any value at the end merely offsets the load of money you spent on housing costs over a lifetime. rarely if ever are you ahead of what you spent.. yes you may be ahead or behind compared to renting but overall your cost of housing is an expense like food and eating. if you could sell your refrigerator at the end it would be the same thing. it merely offsets some of an expense.

anyone ever notice typically the un-reimbursed interest alone on a 30 year mortgage can be 2 to 3x what you borrowed .


How Houses Eat Money - WSJ.com
Read the article my friend. It is not about investing in housing it is about the fact that for so many middle Americans much of their net worth is in their house. For some what to do is a question. The link is more about living in retirement and not about investing for.
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Old 10-14-2009, 03:32 PM
 
71,626 posts, read 71,751,865 times
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well thats what we were discussing, the problem is that a house is relatively illiquid and unless you do those things i mentioned above which most of us wouldnt want to do then being house rich and cash poor is still pretty miserable.
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Old 10-14-2009, 04:15 PM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by mathjak107 View Post
well thats what we were discussing, the problem is that a house is relatively illiquid and unless you do those things i mentioned above which most of us wouldnt want to do then being house rich and cash poor is still pretty miserable.
Unless you capture the wealth in your house by one of the methods listed in the article.
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Old 10-14-2009, 04:19 PM
 
71,626 posts, read 71,751,865 times
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yep, and lets all hope we never have to do any of those things... maybe ill sell you my kitchen ha ha ha ha
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Old 10-14-2009, 04:46 PM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by mathjak107 View Post
yep, and lets all hope we never have to do any of those things... maybe ill sell you my kitchen ha ha ha ha
That we encompasses a lot of folks who are not as fortunate as we are. For some this is a real life question as their net worth is very house dependent. I didn't post this with us in mind but the many others who are not as fortunate. Just read the many posts and you can see what I am talking about. Perhaps I should have posted it in the living on a shoe string budget thread.
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Old 10-14-2009, 04:56 PM
 
71,626 posts, read 71,751,865 times
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good idea.... it would fit perfectly in there
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Old 10-14-2009, 05:09 PM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by mathjak107 View Post
good idea.... it would fit perfectly in there
But since this was a thread about it, that by nature makes it fit in here. It is other discussion that might not
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