Housing Euphoria

Note this clause:IRS makes a depreciation (virtual or estimate deduction) recapture when we sell it as they have given maintenance deduction (actual) !

Cash out refinance is phony too. => Oh, no ! This only gives me money for the next home !

That’s why is phony :grin: You can buy many houses as prices appreciate and leverage yourself crazy… Is ok so long nothing would cause a domino. Build wealth quickly in good times, guess going forward won’t have any bad times :grin: Thought the original purpose is to allow owner to upgrade the house to be more livable not buy a new house :slight_smile:

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That’s why some countries don’t allow cash out refinance or home equity loans. It also forces people to be more responsible and save. Leverage is great when prices are increasing. It’s deadly when prices decrease, and prices don’t increase forever.