wrote in message
oups.com...
NOYB wrote:

Housing prices have averaged an increase of 17-26% in Naples over the
last 6
years. Name a single investment that offered equal or greater return,
with
the same level of risk, *and* a tax deduction.

****************************

You've almost got it, Doc. The price of housing, expressed in dollars,
has increased 17-26% for the last 6 years. The owner of a single family
home in Nipples is no better off, however, unless he also owns
additional property that he doesn't need to *consume* in its entirety
every month.
If you bought a 3000 sq ft house for $350,000 ten years ago and it's
now "worth" $900,000, you aren't actually any further ahead. If you
sold your house for $900,000, you likely couldn't replace it with an
equally large, equally nice house in a comparable neighborhood for
anything less.

If the house is "worth" $9 million, but you have to pay the same $9
million back out again to replace it, all you have in the end is
whatever you had before (in addition to your primary residence) and a
primary residence with a ridiculous valuation attached.
That and a
bigger property tax bill......the local assessors love those inflated
real estate values.

Thanks to "Save our Homes", our property taxes are capped at a maximum 3%
increase per year.

I'm just happy that I have a lot of additional equity to tap into. Within a
year, I'll be debt free (get rid of the school loan and business loan).
That is...except for the million I owe on the house. ;-)

That's good debt though:
Tax write-off.
Appreciating asset.
Safe investment.
Homesteaded (protected asset).