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Unless you own more than one home, or want to extract your equity as debt then increasing housing prices are paper wealth you will never be able to realize unti
by syshum 5y ago
Unless you own more than one home, or want to extract your equity as debt then increasing housing prices are paper wealth you will never be able to realize until death.
Why. Because while your home went up, so did everyone else's, you still need a place to live so if you sold your home you could only buy another home that was of equal value to your current home thus making it is net transfer not a gain...
- nemo44x 5y agoYeah it’s called “being in the market”. But you do realize it as you downsize one day when you don’t need as much space, etc. you can also move to a new market so maybe you lived in or near a major city at one point and want to move elsewhere - there’s a good chance your gains from one market can cover all costs in another. For instance people moving from the Bay Area to Austin, Portland, and Boise.
- tejohnso 5y ago> or want to extract your equity as debt Pretty tempting to do just that when your house value doubles in 5 years and you're left with six figure equity with near zero interest rates, in an investment market that is manipulated to avoid any serious correction or recession. Personally, I prefer to avoid debt, but the past ~20 years has been a perfect environment to maximize leverage in home equity and invest it into more real estate, or the stock market.