Reply to FYI: Don't include home equity in net worth

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm the one in "Net Worth Jail," a few comments above. While your home equity is an asset and officially counts towards net worth, I don't count it because I have no plans to ever draw money out of my house. I'm not going to borrow against it, use it as an investment property, or sell the property to increase my cash flow. The only thing I might do is sell it and invest the money in another primary residence which will be around the same or slightly higher price.

I see my home more as an avoidance of a cost than an asset. Without the mortgage, I will spend $1,500 a month on the condo fees, HOA, insurance, maintenance and repairs. To rent a similar place, it would cost $2,700 a month, so I've reduced my monthly expenses by $1,200 a month by owning.[/quote]

not everyone is the same. I absolutely see my home as an investment. I have a few rental properties with sub 3% rates accross 3 states and will choose one to live in when I retire. I absolutely will be taking the 1.2M in equity I Will have in my current home and use it towards my nest egg. As a matter of fact this along with some other taxable investments and rental income will carry me from my target retirement age of 55  until I want/need to draw on my retirement accounts. [/quote]
Not everyone is the same. I couldn't wait to sell two properties that were had bought for living. Sold them few years ago, put the money in the market, and I retired as every stock 4x'ed. I could buy a home now, but not interested at all.
Renting would have been cheaper and we missed out on the money not being in the market already. 
Third home was sold last year and that money is inherited by young kid. Relatives offered to rent it out for the child's benefit;
I thought they crazy.
To PP, I know you are saving $1200 a month, but the money stuck in the condo ($300-$500k my guess) could be used to make $20k few times a year in the market and that's me being conservative.
[/quote]

oh bless your heart. Some of us diversify. Not everyone’s has to choose between real estate or “the market” as you call it. [/quote]

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