the writer is i guess still a student.. he has not considered the residual value of the investment.. in loan method your value of house at the end of 20 yr would atleast be double (pessimistic view) accoringly, net you would have spend 2.4 million (7.4 - 5).. whereas in rented you would spend 4.6 million to stay in a house for 20 years.. this itself shows that the analysis is incomplete.. and remember i am still not talking abt validity of the calculations !!!
RE:Stupid Analysis
by Anand K on May 01, 2007 08:30 AM Permalink
The writer seems to be young ...no doubt about that. He has not taken into consideration many factos as you have said. Looks like he is yet to earn or buy a house for himself.
RE:Stupid Analysis
by Anamika on May 01, 2007 09:45 AM Permalink
It seems like he need to sell a house and he is frustrated from the going down pricess of house.
RE:Stupid Analysis
by psycho on May 01, 2007 12:14 PM Permalink
but at the end of it , i am having a house to live An asset (life long asset)
yeh i agree we have to pay double to loan amount but who will give such bulk amount at one go. middle class person ------nobody. if some body would be there then no person would have gone for a loan.
