Quote:
Originally Posted by IllTestYourGirls
So really your house has not done much for your bank account unless you want to downgrade your house the next time you buy.  |
not exactly.
the equity in the house is the same as money in a savings account at the bank.
if the homeowner dies and his children sell the house they get the real cash (less estate taxes) to go buy something with real money.
after the mortgage is paid the homeower can live in the house and just pay taxes, insurance, and repairs. he can move out and rent out the house on a triple net lease and pocket most of the cash.
lots of misinformation about renting vs buying.
the ONLY time it makes financial sense to rent is when you are renting SHORT term while looking for a good deal to BUY.
there are other advantages to buying real estate, and have to do with leverage, refinance to pull cash out, tax deferred exhanges, deductions to reduce your income tax, pride of ownership, insulation from rental increase, etc etc.
the tax incentives are real, and you should own instead of renting to acquire any real wealth in america.
i get a kick out of the kids that put pix of their BMWs and MBs in gfy.
if they want show some financial sense they should put the pix of the run down 2 flat they just bought and are fixing up. because in 10 years time they won't have to lease the beemer, they can pay cash for it.
and the renter will still be renting.