Silver Quarter still buys a gallon of gas!

Also, before you guys get too carried away with your argument over how houses are denominated, there are a few different definitions of denominate/denomination in the dictionary. You both would do well to look them up, because you're both right in a way... Just sayin'

 

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I disagree on counting a home as an asset. Generally, until year 13 or so in your mortgage, you're paying more in interest to the bank than you would be paying in rent. Then, from year 13-16, you're paying about the same in interest as you would be in rent. This doesn't quite hold the same for condos, though, as you need to pay CAM and association fees, which make renting slightly more attractive.

It, of course, depends on your situation, but I always view the home as an off-set liability. I can't really sell it, since I'd then need to find a new one, but the money I eventually save versus renting has some value, assuming that savings is then invested.

As for the refinancing issue, usually periods of refinancing of debt are followed by extended recessions, with quick acceleration of interest rates upward and a drop in housing prices. Personally, this leads me to believe that renting and saving that downpayment makes the most sense when realtors and mortgage brokers tell you the opposite.

We're near all-time lows for interest rates. That also means we're near all-time highs for real estate prices.

 

I don't think so yet. there was significant disconnect during the 'recession' and it has almost caught up in the coastal areas of California, but not the more inland areas. The San Diego beach zone is back, San Diego city is getting close to being back, eastern SD is still behind, from the weekly business section. Central Arizona appears to still be lagging a lot, but Northern AZ and Tucson seem to be close (again according to business sections) . We took advantage of refinancing last year, and it improved our cash flow. Taxes seem to be lagging about 1 year, so I expect a large boost there next year. Most are in trust for the son.