Yes and no. … Yes and no. uming that the car is actually worth 100K, you’re right. But if you live in a reasonably densely populated city with a half-decent public transit system, chances are that the car isn’t worth the book value.
In much of Scandinavia, for example, commuting by car is actually more expensive than commuting by train *just in terms of running costs* – which argubly makes the car an et with a *negative* value in purely economic terms.
In the Netherlands … In the Netherlands they also have the option to get the “overvalue” of the house from the bank. So people could use that amount of money, not for holidays but only for improving the house.
I have a house but i did not really understand the concept until this video, thanks for that.
Luckily i did not use that “overvalue” because this overvalue will go down as the prices decrease of houses. So this overvalue is a kind of buffer for decreasing house prices.
Just a question Sal … Just a question Sal> If I bought a car than we should write the car in ets, in this case 100K and cash will decrease by 100K, So equity should stay the same. Am I wrong?
You originally … You originally bought a house for a million and a half dolalrs, and a year later, the value of the house went up to 1.5 million???? Im confused.
Also 75% of 1.5 million is $1,125,000 not $1,075,000
You’re right. … You’re right. Although I wanted to show how home equity withdrawal made people feel rich and consume more. Education, for the most part, is an investment and, uming the student is responsible, will generate a return.
I love these videos … I love these videos, very educational and true…but perhaps give some home owners a better wrap than people who will go on a 100K vacation…perhaps they spent it on education! The result is the same
Simple example of borrowing from equity to fuel consumption
Comments
Yes and no. …
Yes and no. uming that the car is actually worth 100K, you’re right. But if you live in a reasonably densely populated city with a half-decent public transit system, chances are that the car isn’t worth the book value.
In much of Scandinavia, for example, commuting by car is actually more expensive than commuting by train *just in terms of running costs* – which argubly makes the car an et with a *negative* value in purely economic terms.
In the Netherlands …
In the Netherlands they also have the option to get the “overvalue” of the house from the bank. So people could use that amount of money, not for holidays but only for improving the house.
I have a house but i did not really understand the concept until this video, thanks for that.
Luckily i did not use that “overvalue” because this overvalue will go down as the prices decrease of houses. So this overvalue is a kind of buffer for decreasing house prices.
Just a question Sal …
Just a question Sal> If I bought a car than we should write the car in ets, in this case 100K and cash will decrease by 100K, So equity should stay the same. Am I wrong?
Its never too early …
Its never too early to learn about managing your money.
I just don’t really understand why you owe the bank 325k when its coming out of your house.
Should I Be …
Should I Be Watching This I’m fifteen ? But I NEED To Learn This.
Hey strawman…. …
Hey strawman….read and pay attention….
He said he originally bought it for 1 million AND he said the 1.075 is an approximation.
You originally …
You originally bought a house for a million and a half dolalrs, and a year later, the value of the house went up to 1.5 million???? Im confused.
Also 75% of 1.5 million is $1,125,000 not $1,075,000
You’re right. …
You’re right. Although I wanted to show how home equity withdrawal made people feel rich and consume more. Education, for the most part, is an investment and, uming the student is responsible, will generate a return.
I love these videos …
I love these videos, very educational and true…but perhaps give some home owners a better wrap than people who will go on a 100K vacation…perhaps they spent it on education! The result is the same