Do you look at your home here as an investment?

[graciegirl]

Many people who move here, more than half, pay outright for their homes. Many will live here until they pass away or enter a place that will assist them in living comfortably.

Do you hope that your home will continue to keep it's value or even become more valuable?

If so why?

We have always looked at our home as an investment that we can enjoy in the present and that will continue to earn money.
We would like to be assured of being able to meet all bills in our lifetime and leave something for our children.

How about you? Do you hope your home will continue to become more valuable, although it may be your last home?

[Blessed2BNTV]

When looking at our net worth, yes we include our home, however do not use the numbers when looking at where we can live out our last days.

[skip0358]

I look at our house as a place my Wife & I can live for many years and gather with friends and family. When we're gone it will belong to our 2 daughters for them to do whatever with.

[pauld315]

We have always looked at our home as an investment that we can enjoy in the present and that will continue to earn money.
We would like to be assured of being able to meet all bills in our lifetime and leave something for our children.

How about you? Do you hope your home will continue to become more valuable, although it may be your last home?

I don't understand the correlation between meeting all bills in our lifetime and having a house being an investment that earns money.

However, to answer your question, I don't really consider this house we bought in The Villages recently as an investment. I have plenty of those. It would be nice if it appreciated but I certainly am not banking on it. If anything I consider this home purchase as an investment in our retirement well being and health.

When it is all over, the kids get what is left. Financial planners tell me that the absolute best financial planning is to spend your last dollar as they are closing your coffin :)

[ColdNoMore]

When looking at our net worth, yes we include our home, however do not use the numbers when looking at where we can live out our last days.

I look at our house as a place my Wife & I can live for many years and gather with friends and family. When we're gone it will belong to our 2 daughters for them to do whatever with.

I don't understand the correlation between meeting all bills in our lifetime and having a house being an investment that earns money.

However, to answer your question, I don't really consider this house we bought in The Villages recently as an investment. I have plenty of those. It would be nice if it appreciated but I certainly am not banking on it. If anything I consider this home purchase as an investment in our retirement well being and health.

When it is all over, the kids get what is left. Financial planners tell me that the absolute best financial planning is to spend your last dollar as they are closing your coffin :)

Yep. :D

[NotGolfer]

I don't understand the correlation between meeting all bills in our lifetime and having a house being an investment that earns money.

However, to answer your question, I don't really consider this house we bought in The Villages recently as an investment. I have plenty of those. It would be nice if it appreciated but I certainly am not banking on it. If anything I consider this home purchase as an investment in our retirement well being and health.

When it is all over, the kids get what is left. Financial planners tell me that the absolute best financial planning is to spend your last dollar as they are closing your coffin :)

What he said!!!!!:beer3:

[Nucky]

I like to see the equity go up just like before except it is not critical like it was before. It is not ALL about others anymore. It is about us. We have our kids set up in the important categories of life and now want to take care of ourselves. Any extra money laying around when we go should be stuffed up our sleeves in case we have a cover charge wherever we're going. Whatever we have when the end comes goes to our grandchildren. There is no wrong answer here but the best thing about TV is being stress free. It's up to us to keep it that way.

[dietpepsi]

we consider it a real liability to our kids when we go over to the otherside,,, but the real salvation for our kids is the small homes meet FHA standards for low cost housing, so i am sure it was in the master plan for the morri$e family that this would all become a huge low cost housing project!

[manaboutown]

Homes are not really investments when one considers the ongoing costs of ownership The only home that turned out to be a great investment for me was a home I owned in Newport Beach in Orange County, CA which appreciated 400% from 1996 to 2006!

[justjim]

I don't understand the correlation between meeting all bills in our lifetime and having a house being an investment that earns money.

However, to answer your question, I don't really consider this house we bought in The Villages recently as an investment. I have plenty of those. It would be nice if it appreciated but I certainly am not banking on it. If anything I consider this home purchase as an investment in our retirement well being and health.

When it is all over, the kids get what is left. Financial planners tell me that the absolute best financial planning is to spend your last dollar as they are closing your coffin :)

Each person (s) should make up their own mind (s) how to spend their savings and what to leave to their children, grandchildren, relatives and friends. This is not a financial planners decision but yours.

We consider our home we own in The Villages as an investment and BTY a good one.

[pauld315]

Each person (s) should make up their own mind (s) how to spend their savings and what to leave to their children, grandchildren, relatives and friends. This is not a financial planners decision but yours.

We consider our home we own in The Villages as an investment and BTY a good one.

Absolutely agree and that is why I put the smiley symbol after that statement regarding the financial planner and the coffin. It was a joke.

However, I still don't look at this house as an investment monetarily and that is my decision.If it goes up in value, fine. If it goes down, that's fine too. I am going to enjoy my home there and my retirement either way.

[doran]

I wish I could still afford my homes in Laguna Beach and Newport Beach, CA. I had to make a choice of early retirement or move to a place I could comfortably afford. We chose to sell and move here. My homes in California all rose tremendously in value, perhaps over inflated. Since moving here in 2011, paying cash, and upgrading everything, I feel I would be hard pressed to sell for any type of profit. So many new homes are being built that the price of pre-owned has leveled off. Only my opinion, nothing more. I miss Orange County, but not 14 hour days.

[Greg Nelson]

Many people who move here, more than half, pay outright for their homes. Many will live here until they pass away or enter a place that will assist them in living comfortably.

Do you hope that your home will continue to keep it's value or even become more valuable?

If so why?

We have always looked at our home as an investment that we can enjoy in the present and that will continue to earn money.
We would like to be assured of being able to meet all bills in our lifetime and leave something for our children.

How about you? Do you hope your home will continue to become more valuable, although it may be your last home?

I believe that owning in TV will return as much as the bonds we own. We're on a SKI vacation..Spending Kids Inheritances.

[ColdNoMore]

Homes are not really investments when one considers the ongoing costs of ownership The only home that turned out to be a great investment for me was a home I owned in Newport Beach in Orange County, CA which appreciated 400% from 1996 to 2006!

I wish I could still afford my homes in Laguna Beach and Newport Beach, CA. I had to make a choice of early retirement or move to a place I could comfortably afford. We chose to sell and move here. My homes in California all rose tremendously in value, perhaps over inflated. Since moving here in 2011, paying cash, and upgrading everything, I feel I would be hard pressed to sell for any type of profit. So many new homes are being built that the price of pre-owned has leveled off. Only my opinion, nothing more. I miss Orange County, but not 14 hour days.

My best friend was born and raised in Newport Beach and owns some rentals there he inherited from his mother, that in my opinion would be middle-to-low end in most places...but command rents that are obscene. :oops:

A relative of his owns this place, that became famous when they made President Nixon stand in line like everyone else, because they don't take reservations...from anyone. :D

[Fred R]

Well of course I consider my home an investment, and one that I would HOPE goes up in value. Although the last 2 years hasn't been so good, especially with the acquisition of more and more land and more and more building. But, with that said, how could anyone really say they didn't care if the values decreased. My home was sold for 33% more after three years with the previous owner and I've lucky to see the same home increase 4 % a year. I realize I'm probably going to be criticized here and told that " if you don't like it here just leave", but I would suggest that most folks do view their home as an investment, and most folks would certainly hope the investment does well.

[l2ridehd]

I think of the home as a potential bank account with $$$$ in it. I use it, I live in it, but if ever needed I could sell it and rent, or get a reverse mortgage, sell and buy a smaller cheaper home, but somehow access that equity if needed. Hopefully never will and can let the kids and grand kids worry about it. I currently have 3 homes here so yes I use the other two as investments. So far have worked out well as rentals with mortgage getting smaller, property value growing slowly, and all being paid by someone else.

I watched my parents scrimp and save and not travel, not spend, because they were afraid of running out of money. (grew up in the depression) None of us kids needed it and we use to plead with them to spend it on themselves. They never did. So very sad. When they died there was not much left so I guess they achieved there goal, but all 3 of their children could have and would have taken care of them.

After watching what happened to them, my objective is to have my check to the undertaker bounce. Children are educated, have good jobs, grandchildren have paid up 529's thanks to pop pop, so I believe what we have, we should use for us. I was blessed in life and always had great jobs, earned more than I ever dreamed possible, and now is time to spend it and enjoy life. So my home is a bank account that if ever needed I will cash out and spend.

[Cedwards38]

I guess anything that has the potential to earn or lose money for one is an investment, however we did not think that way when we bought this home. It's more of a tool to provide us with shelter, comfort, storage, and lifestyle. I've never lost money on a home, but I've never thought of them in terms of what they can earn for us.

[CFrance]

I guess anything that has the potential to earn or lose money for one is an investment, however we did not think that way when we bought this home. It's more of a tool to provide us with shelter, comfort, storage, and lifestyle. I've never lost money on a home, but I've never thought of them in terms of what they can earn for us.
Our feeling exactly. Although we have followed certain rules suggested to hopefully assure appreciation--for instance, buy low in a high neighborhood, and location, location, location--we never looked at home buying from the standpoint of making money. The one time we made a killing was from being in the right place at the right time. We just as easily could have been in the wrong place at the wrong time.

Our financial security comes from other types of investments. We didn't even pay cash for this place because money was so cheap at the time, and our broker started tearing his hair out at the thought. So I apologized to our son for ultimately leaving him with a house to sell, and he said no worries--he's buying his expat brother out and moving to The Villages!

[billethkid]

I am not sure many folks look at the home they are about to purchase as to whether it is a good investment.
We buy what we want and like where we want to be and like.
I grant that there is some number of folks who weigh that very carefully...maybe short term ownership....anticipated multiple moves in one's life time...etc.

Perhaps we have been fortunate but we wound up never selling any home for less than we paid. And most were significantly better returns. But as has been mentioned that return is usually based on acquisition cost VS selling price...excluding cost of ownership.

Like the stock market whether one is losing or gaining is only pertinent at the time of the sale. The rest of the time it is a feel good or hand wringing on paper only.

There are no decisions we make that include what will be left for those we leave behind.
I do not view that as selfish. Maybe it is because we know we will never use what we have!?

A very individual view/position for us all.

[PennBF]

We definitely see our home as our "Frog" settlement as we are here until we croak.:popcorn:

[sail33or]

All my financial advisors have ALWAYS said the same thing. A personal home is NOT an investment. It is where you SUBJECTIVELY want it and subjectively spend money on it. And you can never expect some other buyer to value it as you do. Some people will pay $100K for a Golf Course view and others will pay NOT to see golf carts. Personal choice. Not an investment. I see lots of folks worry about (Supply and Demand) in The Villages. The Developer will be able to always Supply any Demand. Location is a Subjective choice. (So no a home should not be viewed as an investment.) Since it is subjective though, many will. Personal choice.

[sail33or]

Also, if you sold your house in order to use the proceeds. you would need to use the proceeds to pay for HOUSING of some sort. It would be generating a negative return until it is zero.

[graciegirl]

My husband was employed by a large corporation that moved it's people every few years so that was the basis for our feeling about buying with thoughts to sell. We were corporate gypsies. We have owned ten homes. Only one did we lose money on.

We also have a very wonderful special needs child that we don't want ever to be hungry after we exit stage right.

I find that people on this forum view their homes with a decided link to their politics. (The few I know well enough to figure that out.)

I am one that wears old clothes and clips coupons and probably always will. And my husband is working as a consultant for the same company that he worked for, for almost fifty years. Not many hours, but ya never know...

[hulahips]

I do not consider it an investment any longer. If we purchased yrs ago and sold now maybe. However with the prices so high now, I don't see Making any money on it. Sometimes I worry that in the future prices will decline as they overbuild. Many will find that a Turn off and want out. Especially as we all age, need hospitals and we don't have enough. That plus the traffic, congestion etc... Will make many leave

[Chatbrat]

When I was in college an finance professor lectured about the differences between renting & home purchasing, he said renting would be more advantageous from a $$ point of view--backing out taxes, interest ,repairs, improvements, selling & buy expense and the big one is lost opportunity to invest because so much $$ are tied up in a non liquid asset

Personally--I never looked at a non liquid asset as an investment,

[rubicon]

Do you look at your home as an investment. Yes because it is subjected to some of the same risks as other investments.

Yes because I maintain it and keep it as current as I can so that my kids will be in a position to live in it, rent it, sell it. So I now view it as an investment for my kids.

Like a number of people living here we moved around the country and were fortunate to be able to have closing costs, moving cost mortgage rate differentials met. This afforded us the opportunity to free up equity and reinvest that equity into successive homes

We viewed our homes so much as an investment that we never hung pictures on the wall to maintain them in as pristine a state as we could.

irrespective of the market our kids will have a financial windfall if they sell it.

[dewilson58]

My homes up North were investments...........I cared about their increasing values so I could afford more when I retire.

My home in TV..........an investment???......Nah.

[billethkid]

Do you look at your home as an investment. Yes because it is subjected to some of the same risks as other investments.

Yes because I maintain it and keep it as current as I can so that my kids will be in a position to live in it, rent it, sell it. So I now view it as an investment for my kids.

Like a number of people living here we moved around the country and were fortunate to be able to have closing costs, moving cost mortgage rate differentials met. This afforded us the opportunity to free up equity and reinvest that equity into successive homes

We viewed our homes so much as an investment that we never hung pictures on the wall to maintain them in as pristine a state as we could.

irrespective of the market our kids will have a financial windfall if they sell it.

Spackle and a coat of paint allows one to truly enjoy their "investment". Whatever provides one comfort and satisfaction.
No real wrong answer when all is said and done.

[rjm1cc]

Not an investment. Now I realize that you might have bought a home for $50,000 and it is worth a million now. But I think that is the exception. I think of it that you need a home so if you sell one you buy another so it is not an investment. For most when you consider inflation, real estate taxes, maintenance etc it could be a cost.

As far as making a profit with an over 55 community home I think not. As people die or move on the pressure might be to sell as quickly as possible and thus depress used house prices.

[Topspinmo]

We've worked for everything We got, no inheritance, no rich spouse just working and doing right thing. Everything we got paid for and NO credit card debt. Not bad for ******* child? Yes, for us it's big investment. How can 200k plus not be and for some of you 10x more? I expect to at least get most our money back when we sell. I envy you silver spooners that don't think of you home an investment. Must of got lots of free stuff over the years and lived sheltered life to consider what I Call big investment.

[ColdNoMore]

We've worked for everything We got, no inheritance, no rich spouse just working and doing right thing. Everything we got paid for and NO credit card debt. Not bad for ******* child? Yes, for us it's big investment. How can 200k plus not be and for some of you 10x more? I expect to at least get most our money back when we sell. I envy you silver spooners that don't think of you home an investment. Must of got lots of free stuff over the years and lived sheltered life to consider what I Call big investment.

When are you planning on selling?

I think you miss the point of most of the posters, that we are here until the end so there is no "selling" that's going to happen...except by our heirs.

And I would bet that almost every single one of us, worked just as hard (if not harder) as yourself, saved/invested just as wisely as you say you did and have never had "silver spoons" or lived "sheltered lives"....to get here. :ohdear:

[Jdmiata]

This is an investment. But not for me , for my son.

[rustyp]

Lucky enough to have two houses. An investment for each of our children. Feels so good that I convinced the old girl it's time to start investing in a bigger boat for them.

[Dr Winston O Boogie jr]

I had two small IRAs that were earning less than 1% per year.

I took one, a Roth IRA and used it for the down payment and the other, a standard IRA is set up to make the monthly payments. I can write off the interest on the mortgage against the taxes due on the standard IRA.

In less than two years my house is worth close to $15,000 more than what I paid for it. I couldn't see the point in leaving that money where it was.

Also, I sold my old house and put that money back into my retirement portfolio.

So I don't look at it as an investment that I'm going to be able to use but it has increased my net worth.

[Bay Kid]

First I look at my home as free rent, then I hope the value will go up by the time I sell.

[Topspinmo]

When are you planning on selling?

I think you miss the point of most of the posters, that we are here until the end so there is no "selling" that's going to happen...except by our heirs.

And I would bet that almost every single one of us, worked just as hard (if not harder) as yourself, saved/invested just as wisely as you say you did and have never had "silver spoons" or lived "sheltered lives"....to get here. :ohdear:

Unless flop dead of heart attack, life usually ends in nursing home or assisted living. Most will sell.

Worked just as hard or maybe harder? Ask your self few questions. Did you have mother and father,? Was the loving parents. Did you HAVE to work going to high school? Did you get the free ride to college, grants, daddy forked, etc. did you have to work to pay for college or was it paid party time? After college was you set up for job? Last but not least. Have you been leach off your parents. Think about. Just some of the reasons poor people never get ahead and others have the silver spoon. :popcorn:

[jnieman]

Many people who move here, more than half, pay outright for their homes. Many will live here until they pass away or enter a place that will assist them in living comfortably.

Do you hope that your home will continue to keep it's value or even become more valuable?

If so why?

We have always looked at our home as an investment that we can enjoy in the present and that will continue to earn money.
We would like to be assured of being able to meet all bills in our lifetime and leave something for our children.

How about you? Do you hope your home will continue to become more valuable, although it may be your last home?

We have owned 9 homes in our marriage. The house here in The Villages has appreciated the most of any of the homes. We paid $199,900 8 years ago and it is now worth around $260,000. We have enclosed our lanai and put in wood floors. We made just $30,000 on our last house and we lived there 20 years.

[manaboutown]

Unless flop dead of heart attack, life usually ends in nursing home or assisted living. Most will sell.

Worked just as hard or maybe harder? Ask your self few questions. Did you have mother and father,? Was the loving parents. Did you HAVE to work going to high school? Did you get the free ride to college, grants, daddy forked, etc. did you have to work to pay for college or was it paid party time? After college was you set up for job? Last but not least. Have you been leach off your parents. Think about. Just some of the reasons poor people never get ahead and others have the silver spoon. :popcorn:

Actually many, many "poor people", i.e., those born and/or raised under deprived/struggling/difficult/financially hard circumstances do get ahead. However, it depends very much on their outlook on life and behavior/conduct. If they study hard, work hard, manage their money and other resources prudently and take sensible investment risks with the money they gradually save over time with a little "luck" they can lead quite successful lives. Over the years I have met or known probably several hundred "successful" people who came from "poor" circumstances.

To me the most remarkable among the people I know who rose from poor circumstances are people who immigrated to our great and wonderful country for the opportunity it affords all. Many of them arrived not able to speak English yet have prospered over time.

[pauld315]

We've worked for everything We got, no inheritance, no rich spouse just working and doing right thing. Everything we got paid for and NO credit card debt. Not bad for ******* child? Yes, for us it's big investment. How can 200k plus not be and for some of you 10x more? I expect to at least get most our money back when we sell. I envy you silver spooners that don't think of you home an investment. Must of got lots of free stuff over the years and lived sheltered life to consider what I Call big investment.

Wow ! To disparage a whole group of people simply because they have a different opinion than you seems a little over the top on this subject. Just to let you know, I grew up dirt poor in a family of 5 with my father never making more than 18K a year, my mother never worked outside the house. My wife's family had seven kids and 2 alcoholic parents, never owned a home and had to do whatever they could to just feed their family. My wife's "inheritance" when her parents passed was 118 dollars. We donated it to charity.

Everything we have we earned, there was nothing for free, there was no silver spoon, there was nobody else paying for college, there was no family business that just took us on.There was nothing.

I don't consider my retirement house an investment. I never plan on selling it , I plan on my kids owning it after we pass but if they want to sell it that is up to them. . All the hard work and all the saving and all the investments and all the sacrifices we made during our lives is what enabled us to buy a retirement home and we are going to enjoy it and our retirement for however long God gives us on this planet.

So, I respect your opinion that your retirement home is an investment, please respect mine.

[ColdNoMore]

Unless flop dead of heart attack, life usually ends in nursing home or assisted living. Most will sell.

Worked just as hard or maybe harder? Ask your self few questions. Did you have mother and father,? Was the loving parents. Did you HAVE to work going to high school? Did you get the free ride to college, grants, daddy forked, etc. did you have to work to pay for college or was it paid party time? After college was you set up for job? Last but not least. Have you been leach off your parents. Think about. Just some of the reasons poor people never get ahead and others have the silver spoon.

Yes, yes, yes, no, yes, no, yes...and no.


Glad to help. :ho:


:wave:

[ColdNoMore]

Wow ! To disparage a whole group of people simply because they have a different opinion than you seems a little over the top on this subject. Just to let you know, I grew up dirt poor in a family of 5 with my father never making more than 18K a year, my mother never worked outside the house. My wife's family had seven kids and 2 alcoholic parents, never owned a home and had to do whatever they could to just feed their family. My wife's "inheritance" when her parents passed was 118 dollars. We donated it to charity.

Everything we have we earned, there was nothing for free, there was no silver spoon, there was nobody else paying for college, there was no family business that just took us on.There was nothing.

I don't consider my retirement house an investment. I never plan on selling it , I plan on my kids owning it after we pass but if they want to sell it that is up to them. . All the hard work and all the saving and all the investments and all the sacrifices we made during our lives is what enabled us to buy a retirement home and we are going to enjoy it and our retirement for however long God gives us on this planet.

So, I respect your opinion that your retirement home is an investment, please respect mine.

:BigApplause::BigApplause::BigApplause:

[2BNTV]

I think anyone in their right mind would like to see their home appreciate in value over time.

I will leave it to my son to use, or sell, as he sees fit to do.

For me I am a frog, so I"m here till I croak. :smiley:

I would tend to think buying a second home would fall into the category of using a home as an investment.

[TOTV Team]

Please stay on topic all and nothing politically related in this section.

[Bavarian]

House and Condominium are investments that we live in, though the last not often. Hope Germany does not take it for assylum housing.
Lost money on last house we sold before moving to FL. Hope this one appreciates so if and when we have to move to assisted livinf, we can afforded it. otherwise relatives and charities won't get much. Mostly going to charity.

Heard best idea is to write your last check to IRS and have it bounce.

[Topspinmo]

Wow ! To disparage a whole group of people simply because they have a different opinion than you seems a little over the top on this subject. Just to let you know, I grew up dirt poor in a family of 5 with my father never making more than 18K a year, my mother never worked outside the house. My wife's family had seven kids and 2 alcoholic parents, never owned a home and had to do whatever they could to just feed their family. My wife's "inheritance" when her parents passed was 118 dollars. We donated it to charity.

Everything we have we earned, there was nothing for free, there was no silver spoon, there was nobody else paying for college, there was no family business that just took us on.There was nothing.



I don't consider my retirement house an investment. I never plan on selling it , I plan on my kids owning it after we pass but if they want to sell it that is up to them. . All the hard work and all the saving and all the investments and all the sacrifices we made during our lives is what enabled us to buy a retirement home and we are going to enjoy it and our retirement for however long God gives us on this planet.

So, I respect your opinion that your retirement home is an investment, please respect mine.


I don't have to agree with the bunch of people, nor do they have to agree with me. Has nothing to do with respect. There is little respect if disagreements

" Father made up to 18k year". ( guessing you were kid in at least late 50s.?) in the 50s or early 60s that wasn't considered poor, not the silver spoon, but not poor by any means. Has nothing to do with respect. Different people have different outlook on what considered middle class vs the poor based on they're experiences.

Your wife knows what is like. But, still there was money for alcohol? Difference between no extra money than not carrying. Either way if was ruff and painful for her IMO.

[Topspinmo]

Lucky enough to have two houses. An investment for each of our children. Feels so good that I convinced the old girl it's time to start investing in a bigger boat for them.


No that's funny! A boat an investment. :bigbow: every boat I had I lost my___!

[pauld315]

I don't have to agree with the bunch of people, nor do they have to agree with me. Has nothing to do with respect. There is little respect if disagreements

" Father made up to 18k year". ( guessing you were kid in at least late 50s.?) in the 50s or early 60s that wasn't considered poor, not the silver spoon, but not poor by any means. Has nothing to do with respect. Different people have different outlook on what considered middle class vs the poor based on they're experiences.

Your wife knows what is like. But, still there was money for alcohol? Difference between no extra money than not carrying. Either way if was ruff and painful for her IMO.

Father retired in 1979 making 18K a year after working for the same company for 35 years, , far cry from the 50's or 60's.

[manaboutown]

From 1900 until 2012 home prices rose on average 3.1. Inflation averaged 3.0%. Observations: 100-Year Housing Price Index History (http://observationsandnotes.blogspot.com/2011/06/us-housing-prices-since-1900.html)
Factor in maintenance, improvements, taxes, insurance, that the equity in a house could be invested otherwise in an income producing asset and so on and it actually costs one to live in a house. Of course we also need to have a roof over our heads so to speak. At age 75 I am not much concerned about how much my home may appreciate in the future. I am concerned that it not cost me too much to continue to live in it as long as I am able to do so.

[ronsroni]

Yes, GG, an investment AND our last home.
Due to LIFE getting in the way temporarily my income dropped by 50K. Hopefully, we bought wisely and Ron will continue to be a numbers man so's we don't get shafted, if you get my meaning. We have naught to burn, but, we will be OK till whenever. no need to panic. we will ALWAYS be ok..

[Boomer]

C'mon, most of us are old enough to have owned houses over decades so we should remember that sweet, sweet tax law change in 1997 when the capital gains exclusion on a primary residence became $250,000 single/half a million for a couple.

Before that, the exclusion was a once-in-a-lifetime $125,000 after age 55; therefore, sellers tended to reinvest any profit in more expensive homes to avoid what could have caused a sizeable taxable event. (I always thought this was a big part of why all those new subdivisions full of McMansions started springing up. Those pretty, brand new McMansions were a big market, especially for those job-transferring from more expensive cities. Those transferred often were thrilled to see what they could buy in their new city. Why not? The alternative would have been to pay a honkin' cap gains tax on what was not invested in their next house.)

When the tax law changed in 1997 to allow the much bigger profit exclusion from taxes, it also was no longer once-in-a-lifetime. The requirement then became that the home had to be the primary residence for two years. (In fact, I think it might be 2 out of 5 years but 2 gets the exclusion. Flippers, who live in their houses, love it, too.)

That 1997 tax law change allowed a lot of aging boomers to downsize and keep some tax-free profits.

That 1997 tax-law change benefited a lot of homeowners, regular people, by letting them keep the change from a tidy profit on a home that had appreciated while buying their next home for less than what they had sold. That law no doubt has helped the growth of The Villages, too.

And that is my dissertation for this morning. I just wanted to remind my fellow boomers (and beyond) that throughout our decades of buying and selling homes, there has been more to a home as an investment than simply an increase in value.