silly millie wrote:
It's a mistake to consider a home an asset, because you MUST have a place to live. How much you spend it up to you. But "investing" in a home also brings on huge liabilities. That $200k value value can plummet and quickly turn upside down, natural disasters can take a toll, etc.
28 yo net worth $20, spends $8 on a meal at Chipotle, but doesn't eat the food because he plans to sell it later. What's his net worth now? Slightly oversimplified, but not that much different.
It actually is completely different. The chipotle meal is worthless on the resale market, and, even if it weren’t, depreciates to worthless in under an hour. If you have home equity and need it, you can sell your house and rent something. Especially in Seattle of all places.