Quote:
Originally Posted by brk-lnt
Sorry, but not by a long shot there. He might be a "paper" millionaire, but that is essentially worthless.
You're not a "millionaire" until you've got it in cash or a liquid vehicle. Property values can change dramatically, and a paid-for house worth $1MM can't really be leveraged into other investments, you're paying taxes on it, not earning money from it.
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I respectfully disagree. Life is full of choices, choices have consequences. A million dollar house is not "worthless". I agree it is a less liquid asset than cash, but it can generate income and like anything else you own, it costs money. Ultimately, should it be sold, it will put $1,000,000 into your bank account, so it's not worthless, it's actually quite valuable and up until a year or two ago, year to year has been a much better investment than the stock market. As far as values changing dramatically, welcome to the world of money. Investments can change dramatically. In this country, if you have a million dollars, somebody wants to tax it.