I recently saw an article which stated that for homeowners “their houses are like piggy banks.” But if you own your house, an increase in its value doesn’t seem to help you in any real way, since to realize that gain you’d have to sell it. But then you’d have to buy or rent another place to live, which would also cost more. It seems like the only concrete effect of a rising housing market for most homeowners is an increase in their insurance costs. Am I missing something?
In: 1833
Lots of good answers already, but I want to add…
Someday you will not need a house anymore. If the value has been growing more than inflation, that means a lot more buying power for you to be in a better renting or long-term-care situation. Or, if you never sell, you’ll be giving a bigger inheritance to your loved ones.
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