Quote:
Originally Posted by Vegas Bound
I haven't lived with my parents for 40 years. I bought a small house, fixed it up and sold it. Bought a little bigger house, fixed it up and sold it. Rinse, repeat over and over. On top of that, I haven't paid a penny in Capital Gains taxes.
People buy too much house, finance it for 30 years and are house poor. Nobody needs a McMansion.
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Paying cash for a home is not always the right strategy. If you use all of your available cash to payoff a home so that you have no payment and you have no available cash for emergency or repairs where do you get money? Because your home equity is not liquid. So you get a home equity loan? get a credit card? or raid your retirement fund? Also a home loan interest is tax deductible, you do not have that write off as well. A fully paid for home is non liquid and non tax deductible.