Gardner, I don't understand the asset calculator.
Gardner, I don't understand the asset calculator.
We count our house as it’s a significant asset. We could sell it and move to a cheaper part of the country if we wanted to. We couldn’t afford to pay rent here now. I don’t think we are in a bubble like last time since 30 tech companies have moved here and we are growing like crazy. When we both die our pensions are dead too)
This is how I treat my houses on the island here too. I could sell one and move to most anywhere else in the country, and end up with a fair chunk of money in my pocket, and lower costs overall. I've factored this into my worst-case financial model for my aging years.
Actually if we wanted some of the house money we would probably move to a condo which are much cheaper. After living in 5 states this place is wonderful and why so many people are moving here. I would miss the great weather, tons of activities and my family and friends.
I think my most likely plan here is to sell the 4500 sq. ft. house on the mountain on the island, that I am living in now, and move into my mother's 1200 sq. ft. place down on the beach, within easy walking distance of our village, once she no longer has need of it. At that point I'll either rent out the big house, or sell it.
Then if I run out of money later on, I can always take out a mortgage or reverse mortgage on one of them.
Downsizing for you is a great option. We downsized 8 years ago.
Our real estate and personal property is an insignificant portion of our net worth. We consider it a use asset and not an appreciating asset (regardless of the current market). I dont follow it "value" and pretty much keep it on our asset list at cost.
The house is a asset, so I count it. I am very conservative on what I value it. It could be sold, rented or borrowed against. It is about 15% of my net worth. Depending on where the stock market settles at.
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