Reply to Should current homeowners wish for home values to decline?

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[quote=Anonymous][quote]
Anonymous wrote:

I think you answered your own question. Major political change due to economic stresses. We are already seeing it. Dollar is ourbeing devalued. Markets collapse. Your home relative to the strength of the dollar will weaken as an asset. But hopefully you view it as a place to live and not an appreciating asset. When you consider taxes, insurance, and maintenance it's not really a great "investment" anyway unless you get lucky with your location improving or something like that.

Exactly this! [b]That is why when I retire and pay off my home I’ll be putting the [b]2M in the bank [/b]and become a renter in the same neighborhood. [/b]Or, I’ll be [b]given my children the money to purchase their move up home[/b]. I’ll still have enough retirement to cover living expenses and health[/quote]

How old will you be when you retire? How many more years do you think you might live? It could be 30 or more. Here's the thing. When the dollar is devalued (it has been devalued 10% since Trump took office) and your bank is paying very little interest, your 2M might not look like such a great amount (especially if you give some of the money to your children for their move up home as well). Your money will be worth less as time goes on. But if you keep your home and enjoy it, you won't have to worry about rent increases and you will likely have a nicer place than the "rental". Plus your children can inherit a real home and we all need shelter. It's real estate (you know, something real). So it can be important to have that as part of your wealth. Your rent could well be more than the taxes, insurance and maintenance costs on your house and you don't know if your $2M in the bank will keep up with your costs anyway. Personally I plan to keep up my house because it's a very comfortable place (garage and parking steps from my door, beautiful yard to maintain privacy from neighbors) and I feel like quality of life is worth a lot as you age. Then again, my house is not worth $2M. It's probably half that, but it's a nice place and the right size.

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