Quote:
Originally Posted by gleem
EXACTLY.. I try and show people this and they think I'm a tool.
Like down here in my neighborhood.. the houses were all bought 3 to 5 years ago for $170k, and they sell for $400 - $500k.. the neighbors are all excited about how much they "made" then I tell them "if you sell where are you going to move?" cause the house all over here are the same price.. The only way to make all the eequity work is to buy cheap properties against it and rent em out, something that none of these people can do..
|
Yeah, it's still a benefit but not the way most people think it is.
It gives you equity that you can borrow against to make other investments. That's capital that most people wouldn't have access to otherwise.
It's also good if you live in a high priced area like the northeast or west coast and then sell out and move somewhere cheap like the midwest or southeast.
Otherwise it's really just a paper profit like you said, because you'll have to find somewhere else to go if you sell.