This math is incorrect. If you already own another house and this is an investment property, you should rent this property out and put that cash flow in the equation. If this is your home, you should put in the savings from not paying the rent elsewhere - or what you were paying previously. Otherwise, you are including the opportunity costs from the prior scenario but not the opportunity gains.thetipster wrote: ↑Jul 19th, 2016 12:13 pmCalculations:
Opportunity costs: 500K * 0.05% = 25K
Taxes: ~5 K
Utilities/Maintenance/Insurance etc.: ~7.5K
Don't know if this has been discussed as this is where I am in the thread...
But only missing piece to this equation is the estimated appreciation of the house asset. I would say we can assume over time 3 to 5% appreciation?
A ~4% annual home price appreciation would have beat out investing in S&P/TSX in the last 4-5 years.