3 ms·
Did you account for the opportunity cost of your down payment? If you chose to continue to rent, you could have invested your $100k or whatever down payment in
by nayuki 4y ago
Did you account for the opportunity cost of your down payment? If you chose to continue to rent, you could have invested your $100k or whatever down payment in the stock market for ~7% a year.
On the other hand, you have to count the mortgage interest as a cost but not the mortgage principal repayment.
- vel0city 4y agoThe increase in valuation in my house far exceeds 7% annualized. Compared to index funds and other investments over the few years I've owned it's far outperformed any other "investment". Obviously, this won't hold true for all time-frames, and I'm not even necessarily a fan of thinking of primary residences as investment vehicles, but if you're going to compare it for opportunity cost it's still not necessarily a home run comparison.