Quote:
Originally Posted by retiredguy123
Not counting the value of the home makes no sense to me.
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A personal home is always listed as a debt. Even if you pay cash for it, it is still a debt. You must pay property taxes, insurance, and maintenance fees. Since these items never go away, a personal home is a debt. If you do not have a mortgage, you simply have a lower monthly cost.
If you do have a mortgage, the balance that you owe gets subtracted from the total of your assets.
This is why the value of a personal home is not taken into account when determining wealth.
My financial advisor gave me this tidbit: If it is cheaper to rent, then rent! If it is cheaper to own, then own! His advice hasn't failed me yet..