• Last Updated:
  • Nov 11th, 2014 1:51 pm
Deal Addict
Apr 22, 2014
2644 posts
Oshawa, ON
You can think of the savings as a perpetuity. The residual value is passed to the next owner if you ever sell.
Think about 2 identical homes, maybe right next door to each other. Both were assessed at $1M. One of the owners fought it down to $950k and saved $362 per year, the other didn't bother.
Both decide to sell one day.
A buyer comes in and he's financing at 3%.
One house is worth $12,000 more than the other to him, all else equal.

Of course things change at the next assessment, but there is a PV to that savings right now.


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