Dr. Jonathan Smithers, MD Phd. wrote:
Chuck,
You are incorrect.



In groups where serious money routinely changes hands, equity in a
personal residence is not typically considered an investment asset.

Example:

A couple of years ago Smith Barney was offering some specialized
brokerage services for those clients with net assets above $10mm.
Specifically excluded from the calculations was equity in a personal
residence. (Darn it all, anyway, I was only $9.99mm from the finish
line before they threw that curve at me.)

Do a bit of research, and you will discover that for most financial
transactions beyond trying to qualify for the next overpriced property
or applying for a Home Depot credit card, home equity is either not
even taken into consideration or will be considered only up to a
predetermined, limited percentage of overall net worth.

Loans where the property will be used as collateral are going to be
exceptions, of course.