Question for the wealthiest 10%... how?

gadgetmind

I'm really not sure whether main residential property should ever be counted. If it is, should we also count resale value of our internal organs? Dunno about you, but I care little about the market value of my heart and liver.

grey_gym_sock

gadgetmind wrote: »

I'm really not sure whether main residential property should ever be counted.

well, you're better off not having to pay rent for the rest of your life. though the resale value may not matter so much.

jamesd

The property matters because it's not uncommon to have a higher value property than required, using it as an investment to exploit favourable tax treatment. Like the mortgage interest tax relief in the US or UK lack of CGT on sale.

racing_blue

gadgetmind wrote: »

I'm really not sure whether main residential property should ever be counted. If it is, should we also count resale value of our internal organs? Dunno about you, but I care little about the market value of my heart and liver.

Maybe a kidney is a better example?

Of course, the difference is that a house is a store of wealth which can safely and legally be tapped by selling!

doughnutmachine

gadgetmind wrote: »

I'm really not sure whether main residential property should ever be counted

tbh, i type of agree with this. the guy that writes the "rich dad poor dad" books argues that anything that puts money into your pocket is an asset and anything that takes money out is a liability.

i even type of think that a defined benefit pension scheme isn't a real asset.

grey_gym_sock

if you borrow up to the hilt to buy as house (to live in) which you can barely afford "as an investment", that won't make you wealthier unless you get lucky.

but if you're an owner-occupier without a mortgage, clearly you're better off than somebody who's renting but has the same assets (excluding the house) as you.

being housed is spending, not investment. but you're better off if you've already paid most of the costs of your future housing than if you still have to pay them.

you also have the option of trading down, or selling up and going on a permanent world tour, or into a care home of your own choosing, etc ...