PONTOON BOAT EQUITY and MY DOG IN A YACHTING HAT with Supplemental Pirate Treasure Analogy.

Renting seems like a great option because the illusion is that you’re not indebted long term, but the reality is that ownership allows you to make time your ally and gain value from growth in the market which builds equity. So the long term disposition of a renter is a financial deficit. The long term benefit of ownership is equity! Equity = MONEY. Money you can spend on a pontoon boat!

So,

Renting = debt. (dog and I in dingy. Dog looks uncertain in my boating skills as we tilt in the uncertain currents and wind)

Owning = equity. (dog in pontoon boat. Dog and I have matching yachting captain hats Dog’s hat stays on because of a chin strap and cut out ear holes for his giant floppy ears.)

Another way of thinking about it is that home ownership is like renting a place long term with a hidden pirate treasure chest that slowly gathers gold coins, so after you’ve owned your house for a while you get a pirate treasure chest filled with “equity”. Equity that you can use to buy your own pirate ship so you can watch your dog do belly flops off the poop deck all summer in Flathead and Whitefish Lake!

The definition on google is: Simply put, the definition of equity in real estate is the difference between the fair market value of the property and the amount of money you owe on the mortgage. Calculating real estate equity is simple. All you have to do is deduct the mortgage value from the fair market value of the property.

Assuming the market values continues to improve, you may access your pirate treasure chest and then go buy a pontoon boat making you and your dog happy as can be. Can you tell what I’m saving up for? I’m a simple man with the dream Kip and I co-captaining a pontoon boat. As a homeowner, this dream is achievable. As a renter, my dog will never get to ride on my boat. We’d have to get a dingy or a kayak. And I promised Kip a pontoon boat. I already ordered the matching captain’s hats. His has a chin strap and holes for his giant floppy dog ears.