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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 (10943)	6/2/2003 6:33:06 PM
From: Mr. Sunshine	Read Replies (3) \| Respond to of 306849

<<their net worth has risen considerably>> Most investment professionals advise not counting your home in your net worth. Having your home go up in value does you no good unless you sell it or refinance for cash out. And the latter case does not really count because the money still needs to be paid back. If you buy a house for $100K and it goes up in value to $1M how much does your standard of living improve? Other than bragging rights, it changes things Zilch, Nada, None! Same if the price goes down. Change in value of an asset is only realized when that asset is sold. Even the IRS pretty much understands that much! So why should someone's taxes increase 10X (in this example) when they recieve no proportional benefit? <<it seems these people have a very self-centered and naive way of looking at the world that is quintessentially Californian>> Ditto for whereever you are from! (Texas? I hope so, I love ragging on Texans!)