Quote:
Originally Posted by zx10guy
Until the house sells, the equity/value is just speculated. While I do understand why one would account projected equity in their house into their overall net worth, I tend to not look at this. The only thing I look at with equity is that I'm not in the negative or there's not enough projected equity where the note on the house wouldn't be covered by the sale.
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Then you should look at your 401k is the same light. Its worthless until its cash in your hand. I had a place 2 blocks from the ocean in long island that i bought right after sandy for 277k. Everyone including my parents said I'm stupid and will never make any money. Fast forward 4.5 years to last February i sold the place in one weekend for 425.
The key is know your market.... Even in 2008 houses never really went below what i have in positive equity. And every one in NYC and NYC boroughs are running to jersey to get away from long island taxes. Even people in Staten island which is part of NYC and has much lower taxes are running to my parts. I think my house at minimum will hold its value and in 15 years be closer to 1.2 - 1.5 mil. But then again wwIII. Who knows.