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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (5795)	10/2/2002 8:00:13 PM
From: GraceZ	Respond to of 306849

Many people retire by selling their primary residence and move into a cheaper, smaller house in a less expensive part of the country. Its the norm rather than the exception for people in their 60s and 70s with considerable housing equity to sell the big house they raised a family in and downsize into something that is easier to take care of and/or has amenities they need in their old age. Women frequently out live their spouse, its difficult for many women to stay in a house after the death of a spouse for many reasons, not just financial. I agree that when you are factoring retirement saving you leave out the house unless its an investment property. I would never leave it out when I factor net worth, primarily because in early years it represents quite a chunk on the liability side and that liability has to be offset on the asset side. All a net worth statement tells you is whether or not your liabilities are getting ahead of your assets or visa versa (doesn't tell you who wins -gggg-). Now to do a real worst case scenario, you have to factor in transaction costs of selling those assets, something my accountant made me do for years for my biz. For most people this is too depressing to figure out on a personal net worth. Although I have to admit I've been able to give people good news after helping them do a net worth more often than not. Even well off people tend to think that they are just keeping a little ahead of the dogs. Right now there is a sort of widespread depression people are going through in regards to money. When presented with a set of personal net worth statements over ten years, sometimes its a great relief to them how far along they've gotten. Of course, they concentrate on that peak number from 2000 (if they have stocks) or in the future they will count 2001-2002 if they have California real estate. Which only goes to show that losses (real or paper) make people miserable to a greater degree than gains make them happy.

To: Wyätt Gwyön who wrote (5795)	10/2/2002 8:01:07 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

...mean it's not enough to retire on.... Exactly. ...talk about having tripled your net... I don't own a home. Every thing is for sale. Every thing is either income or gone went. And the income out weighs the gone went. Every property with the exception of my first has had room for adding equity either through improvements or division. I take that back my first home was a mess of an x rental so I would assume the painting and yard work would be sweet equity. It's difficult to say sense I held it for 19 years renting it for 10 of those 19. Just yesterday received the approvals I needed to sale a portion of what I'm living on. And informed a tenant I would need the property he held in 30 days. So I'm on the move and I really can not tell you if I will take that unit for a roof or make some unseen move as yet to play out. I'll list this turkey and see what there is to see. I've no stress in my sale price, I've a lot of leeway. When I have money in hand and escrow I'll make a move depending on what's what. The not knowing is the part I enjoy the most.