I saw this post today from Seth Godin about what happens when you fall in love with your biggest investment -- irrational behavior. Uh oh.
Tuesday, April 20, 2010
Do you think of your house as an investment?
We love our house. We have no interest in leaving it. And yet most of our net worth is tied up in the house. The current project I'm working on (www.lifetuner.org) has made me very aware of the amount of money needed for retirement. I'm not sure where all that money is supposed to come from, if not from the house.
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2 comments:
As someone currently trying to sell their house and simplify, I'm on the other side of the fence. We bought a nice place in the suburbs, which made sense when I worked out there (lower wage tax). I'm now back in the city, and wow, are we bored on our little cul-de-sac! It also feels a bit much for the two of us; we really don't need 2400 square feet. It feels very un-green. We can afford the place, but are looking for somewhere cheaper and smaller in the city. That will also allow us to lose one of the cars, another major money sink.
This, in turn, will allow us to up our investment amount per month for retirement. Being in an academic institution that puts up 8% into the 403b for my 5% is a very nice balance for the slightly lower salary as well. :)
Yes - I'm with you. Downsizing would make a lot of sense, and I often think how nice it would be not to live somewhere where I'm so totally dependent on having a car. And yet we'd have to leave our garden. Not ready for that one yet.
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