"NOYB" wrote in message
nk.net...

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).

And the chunk of capital gains that is tax free.....can't remember if it is
the first 150k or 250k.

And they still ignore the fact that you have a housing 'expense' regardless.

Two identical houses side by side, one person is renting, the other has
invested and is buying......guess who will come out ahead.