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If you buy a $500k house you pay $5k/year in prop taxes. If that home doubles in value, you have $500k more in wealth (that you can tap withou cash out refinanc
by pbreit 13y ago
If you buy a $500k house you pay $5k/year in prop taxes. If that home doubles in value, you have $500k more in wealth (that you can tap withou cash out refinance) and pay an extra $5k in prop taxes. I'd say you're doing ok.
- samstave 13y agoHow exactly are you going to tap that wealth? Take out a loan, on which you pay interest. If you lose ability to pay that loan, a lien on your house - or even a foreclosure results. Basicallly there is no real way to not be a beholden slave to the monetary system and debt.
- selectodude 13y agoYou tap that wealth by selling the house. You don't just get to turn something that you get to continue using into cash for free. Somebody is taking the risk that the value of the house is going down. And anyway, usually interest on refis are lower than what you can get prudently investing the money.
- pbreit 13y agoAs I said, cash out refinance (easy with 50% equity). Yes, if you're buying a house in the US you are typically going to take on some debt.