A Few Things
Thanks for taking interest...
1. Interest paid on the mortgage
haven't paid any yet because I have not moved in...still losing rent money
2. Property taxes (both net of the income tax savings in excess of the standard deduction)
yes....
3. Insurance
yes, but have same on apartment
4. Maintanence and repairs
should be upgrades since the house is new, but never get 100% back out of upgrades
5. The inflation rate over the period of time
I have a 3.85% mortgage
Plus, to actually get the $20k in value out, Rob must sell his house and pay a Realtor 6%, or $13,800 of the $20k increase, if he is fortunate enough to be able to sell his home at the level the appraisal came in at.
The house I bought is builder of the year and I can probably sell it without a realtor, or I can go with a discount realtor for 3%. Still need a lawyer tho..
Certainly, after including the most important benefit of owning a house, which is that you get to actually live in it, Rob is far ahead of the game -- but it's not always what it's cracked up to be.
True. Bottom line is I will probably leave it in a pine box and never sell, but my wife will be rich ;> Personally I like the flow of cash more than unmovable treasures, but as you say, I need a place to live. It makes sense to use that as an investment if you can regardless. I would like to outlive everyone, liquidate my entire holdings and move into a nice little loft where I can look out over the lake, paint, and play onLine BJ between naps! ;>