[Topspinmo]

Originally Posted by 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.

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

[pauld315]

Originally Posted by Topspinmo

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
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.