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Bollweevil
Join Date: Dec 2003
Location: Fulshear, Texanistan
Posts: 3,363
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The article is 100% correct in my case. Bought a house in San Antonio, TX in 1980. Watched it appreciate nicely for 5 years then watched it loose 25% of value in 1986-1987. Couldn't have sold it for what I paid for it. By the late 1990's it had appreciated back to the pre-bust valuation. Sold it in 2003 when I retired (the house was paid for). When I added up what I paid for it, improvements, repairs, etc. I at best broke even. When you throw in the interest, taxes, insurance paid over those years all you see is red. There is no retirement nestegg here.
As for the mortgage deduction, despite what realtors tell you it really benefits very few people (mainly those in the coasts where real estate is exorbitantly priced). With the standard deduction what it is many homeowners don't pay enough interest with the low interest rates to even deduct it or they may be able to deduct it for part of the loan term at best. As one financial writer put it, us hicks out here in the hinterland are subsidizing housing on the coasts.
Jack
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Jack
74 911 Coupe
2.7L - K21 Option - S suspension
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