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by tdees40
4257 days ago
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That statement assumes interest rates are irrelevant. Sure, if you have a 4% interest rate (the going rate these days), you'll pay 72% more than the value of your house, but that completely ignores the time value of money. A 4% interest rate is pretty great (especially when it's tax deductible!), and just saying that because the undiscounted cash flows that you spend are greater than the initial value of the house means very little. |
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