L8erDude at yattermatters.com February 2nd, 2011 at 1:18 pm, 4:53pm & 3 Feb 2011 at 8:56am -
“Since I bought my home my “income” has been 40% from my job and 60% from housing appreciation. When I sell this is tax free money. Go ahead and rent forever – but you’re rich or poor only in relation to your peers. At 60 years of age come and talk to me about how wise it was for you to rent. … I don’t see a halt to property prices so long as immigration continues at the frenzied pace of the last 20 years. At 60 years old my home will be worth 3x today and your rent will be about the same multiplier. … I won’t take a dime less than my home is worth to sell to an über-bear.”
1. The amount of “income” from appreciation of current market value of their house should be ringing alarm bells for this owner, and telling him/her something about the market, …but it isn’t.
2. The gains are thus far only present on paper. Only a very small percentage of owners in this situation will realize their gains.