Forbes Magazine "Making Your Kid a Millionaire"
June 20, 2011
The June 27, 2011 issue of Forbes Magazine cover features the title of an article in the magazine : "The 10 Steps to Make Your Kid a Millionaire". Step #9 is entitled "Put Your Kids in a House". The writer suggests that the gift of a down payment is a significant step toward their wealth building. Even in today's negative housing environment looking long range gives home ownership an advantage.
Yes, the prices of homes have fallen and may still fall a bit further, but looking out over a longer horizon, property owners win. Here is a quote from the article that does get to the bottom line benefit. If you put capital into stocks and bonds and use the earnings to pay rent, you'll owe tax on the earnings. If you put the same capital into a home you will get a dividend in the form of living space - and the dividend is tax free."
"Cashing out is tax-favored, too. Up to $500,000 per couple of of homeowner capital gain is exempt. You don't get that with your stock portfolio."
How great it is to see writers in a financial magazine rooting for home ownership!
The June 27, 2011 issue of Forbes Magazine cover features the title of an article in the magazine : "The 10 Steps to Make Your Kid a Millionaire". Step #9 is entitled "Put Your Kids in a House". The writer suggests that the gift of a down payment is a significant step toward their wealth building. Even in today's negative housing environment looking long range gives home ownership an advantage.
Yes, the prices of homes have fallen and may still fall a bit further, but looking out over a longer horizon, property owners win. Here is a quote from the article that does get to the bottom line benefit. If you put capital into stocks and bonds and use the earnings to pay rent, you'll owe tax on the earnings. If you put the same capital into a home you will get a dividend in the form of living space - and the dividend is tax free."
"Cashing out is tax-favored, too. Up to $500,000 per couple of of homeowner capital gain is exempt. You don't get that with your stock portfolio."
How great it is to see writers in a financial magazine rooting for home ownership!
posted by shirley harry at 7:59 AM
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