Tuesday, February 16, 2010

What is a House Really?

At times, it appears that many are confusing the value of a house with the value of the dollar.

As most of you know, the dollar has waned in value lately against the Euro, Yen and other currencies even though it has recovered as of late.    In the world of economics, the dollar's position in the market makes us spend more for items created in Japan or Germany but also makes our exports less expensive(ala Ford's resurgence in Europe).  It is the cause of growing trade deficits as we import a whole lot more that we export on a dollar basis; if we had large exports or better said, had the products and manufacturing capacity to create the products desire around the world, we may have trade surpluses and better employment.

Why is that important in speaking about your or my house?  If we look at a home like the dollar as simply its value at a state and time and as a statment of our "financial" well being, we have lost sight a bit of the true value of our house.  It is more than the bricks and sticks or drywall and plumbing.  A house at a minimum is shelter from the elements, a place to raise your childern or a standing location for all friends and family to find you.  But frequently, it is much more.  It is a place of safety and comfort that is customized with pictures and memories that make it the place we call home.  A place that we invest our time and money to decor with furniture, electronics, paint and wood floors and so much more to make it specific to our interests and desires.  A place where you can put your feet up on the couch and leave a bed unmade if you so desire(or ensure your husband never eats in the family room and the kids pick up toys prior to bed time).

So if you are tempted to be worried about "owing more than the house is worth" or that you can't get that new line of credit to buy a car, remember it is your home, not your bank!!!   It is wonderful when the house
has the equity to help out financially but wouldn't you rather have a home where you are loved rather than
a dollar??

I know I do!!!!
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