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Not if you've tied up $200 to buy your house as you could have made more than $10 on investments or even cash in the bank. In other words, the opportunity cost
by benjaminwootton 13y ago
Not if you've tied up $200 to buy your house as you could have made more than $10 on investments or even cash in the bank.
In other words, the opportunity cost of capital is not always accounted for in these comparisons...
- zero_intp 13y agoNow, fill the house with renters paying 10% of the purchase price per year. Mortgage property to 75%, recouping capital at a fixed interest rate. Re-invest capital into index ETF. Opportunities are what you make of them.