We sold our last house during the beginning of the economic meltdown and were lucky to come close to breaking even. Have been traveling and living abroad since, but would like to put down roots and are living in a small city where rentals tend to be pretty trashy.
I wondered if any others out there who are frugal ER's or ESR's have a formula (or maximum) for how much of one's total assets are tied up in a home. Having all our assets liquid as we do now feels both liberating and scary. I can see value in owning a small place free-and-clear. Historic annual appreciation in the very recession-resistant small city where we live (where the biggest employers are prisons - 13 of them - a growth industry in tough times) has been 6%, but the recession has caused a few years of negative returns even here (prices are at about 2007 levels) so it seems like a decent time to buy. I'm not expecting anything better than 3% appreciation, but then again I'd be happy with double that rate in my investment portfolio.
Any thoughts?
I wondered if any others out there who are frugal ER's or ESR's have a formula (or maximum) for how much of one's total assets are tied up in a home. Having all our assets liquid as we do now feels both liberating and scary. I can see value in owning a small place free-and-clear. Historic annual appreciation in the very recession-resistant small city where we live (where the biggest employers are prisons - 13 of them - a growth industry in tough times) has been 6%, but the recession has caused a few years of negative returns even here (prices are at about 2007 levels) so it seems like a decent time to buy. I'm not expecting anything better than 3% appreciation, but then again I'd be happy with double that rate in my investment portfolio.
Any thoughts?