Home ownership absolutely SHOULD be included in net worth calculations.

Not saying renting is a better or worse deal. That’s not issue. As Warren said he’d be a lot wealthier today if he rented his home instead of buying it in 1958. Still,his $1.45 million of equity IS part of his net worth (however miniscule lol).

The way I look at it: It would take nearly $1 million in long Treasurues to fund the principal & interest on my home in lieu of renting. That has value. Not near $1 million because I’d still have to pay taxes, upkeep, etc. But it’s tangible value. I’d be poorer without it.

As a footnote—I’ve thought a lot about Warren’s comments. Let’s assume he put 20% down when he bought his home in 1958 (which I THINK was pretty standard). If he rented instead and sent in monthly rent checks in lieu of mortgage payments—just the 20% down payment he KEPT INVESTED at his lifetime rate—that alone would be worth—I believe—enough to buy his entire Dundee NEIGHBORHOOD of 1500+ homes. Versus the single $1.45 million home his “investment” earned.

The preceding message not endorsed by Berkshire Hathaway Realty :)

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