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Right, but that equity is only useful if you're going to sell it, or you need to borrow money and can afford to make the payments. If I were to buy a $100,000 house tomorrow, and I make the kind of money for which the loan is comfortably affordable but not so much that I could comforably afford a house worth much more than that, being able to borrow $900,000 isn't much of an advantage. Maybe if circumstances change such that I need to borrow money and I can get a better interest rate on a HELOC than I would on a personal loan, but even then the origination fees combined with the fact that the bank now has a lien on your house makes it a questionable decision unless the circumstances call for it.
It's not very liquid but it is wealth and it is useful. If the 10X increase is straight inflation, you've gained $67,000 in the same currency as you bought the house in.
You need a place to live. If your house goes up in value, and you are living in it, your imputed rent goes up, and you are using the more valuable house to pay for the more expensive imputed rent, which leaves you with no gain. If you sell it, you'd have to find some similar place to live and that place's cost also went up. So you don't gain unless you are an investor and you aren't using the house to live in.
What you say is correct if
1) There's no mortgage and either
2a) The increase is entirely inflation or
2b) You can only use housing wealth for housing.
Since 2b isn't true, you can make use of wealth from your primary residence. Suppose housing doubled in value compared to general inflation since I bought my house for $400,000. I move from my house to a house costing 3/4 as much (formerly $300,000, now $600,000). The 1/4 I get out is twice that ($200,000 rather than $100,000) if housing remained the same.
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