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It doesn't get rid of the substantial opportunity cost of the money used to pay for that house. It's not at all fair to ignore that when stating his yearly expe
by gibybo 13y ago
It doesn't get rid of the substantial opportunity cost of the money used to pay for that house. It's not at all fair to ignore that when stating his yearly expenses.
They are more like $40-50k when you include it.
- breischl 13y agoOpportunity cost is important to consider, but it's not the same as cash out of pocket. And if you're going to include the opportunity cost of the house, then you also have to look at the cost of other options. Having a mortgage house costs money, and rent costs money. A paid-off house that you can maintain yourself may be the cheapest option - though that's not true for everyone all the time. There are unconventional options that are much cheaper (camper, RV, tent) but that's a whole different lifestyle.