The more I read about Dave Ramsey the less credibility I think he is. SOME of his advice is common sense and good. SOME is good for some people and not for others. He was a complete utter failure in finances and ended up in debt up to his eyeballs because of bad choices. His advice is geared toward people heading down that path, or already where he was. People who make good decisions from the beginning might find another path works better.
A home isn't as great a financial asset as many believe. My mom and dad paid $25K for the lot and to have a home built in 1972. After they passed it sold for $103K 41 years later in 2013 for a $78K profit. But in those 41 years they paid insurance and property taxes every year. It was painted twice, re-roofed twice, the HVAC system replaced twice, water heater twice, kitchen appliances replaced, new floors and the driveway was repaved once and finally broken up and new concrete installed. For whatever reason the septic system lasted about a year after we sold it and the new owners replaced it.
When you back out the money spent for taxes, insurance, and upkeep there was very little profit after 41 years.
They had to have a place to live, correct? Look at all the taxes, upkeep and maintenance as their rent payment.
Also, your area saw WAY less appreciation than ours. Old man built his house in 1972 for less than $10,000. (Did all work himself on the cheap) 1260' ranch on a basement and acre lot. It's worth easily $240,000 today. Whick is 7% appreciation per year so much higher than the 3%-5% average. Your parents home appreciated at 3% per year (low average). Guess it really depends on the area, initial purchase price, location etc.... My uncle bought a farm outside town limits for $37,000 in the seventies. Town spread to the edge of the farm which is now an industrial park. Sold 40 acres for $40,000/Acre for 1.6 mil. That's close 10% appreciation so way beyond average.
Wealth building takes good choices and good luck too.
