Written By: Ivan F. Beutler and Floyd W. Yorgason
The home is examined in terms of its value as a wealth preserving and accumulating asset. A systematic balance sheet approach is developed to identify basic factors by which home equity can be preserved, accumulated, or diminished. General discussion of the factors is followed by presentation of a general equation developed to systematically specify the individual and combined effects of appreciation, leverage, debt repayment, and general price inflation. The four factors are justified in terms of their value in balance sheet analysis. Key Words: Home, Asset, Balance sheet
Download JournalComments are closed.