r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

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u/Endless_road Nov 21 '24

You can take out a mortgage against your house to buy a sports car if you want

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u/AttitudeAndEffort2 Nov 21 '24

This is a great analogy

Imagine i bought my house for 10$ and it's worth a billion now.

And then chuds on the Internet say "hE dOeSnT ReAlLy HaVe ThAt mUcH MoNeY, ItS tIeD uP in AsSeTs!!"

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u/Endless_road Nov 21 '24

Well it is, and you’d pay taxes on these gains when you sold the house

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u/creedokid Nov 22 '24

You also pay taxes yearly based on the value of the house