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Personal Finances / Buying or Selling a Home
|Subject: Re: Buying Retirement PLace in Fl||Date: 10/26/2013 10:38 PM|
|Author: foo1bar||Number: 126496 of 128427|
As I point out to DH, at $5K/year, we'd have to live another 40 years to equal the $200K cost of buying.
I agree with your other points - but I would look at this differently. If you had a mortgage for $160K at 4%, it'd be $6400 in interest
Add in $40K at 6% ROI if invested in the market, and it's another $2400.
But that's counterbalanced with the appreciation of the property. (let's say 2% appreciation?) So that's $4K offset. So the real downside to your net worth is $4800 (quite close to your current $5K).
Of course if you just look at cashflow it is considerably worse ($8800 vs. $5000)
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