Quote:
Originally Posted by Run Silent
It is your money, not mine. You are welcome to spend it however you see fit. He asked for advice. As a CPA, I gave him some.
Financing any purchase over 30 years is a terrible use of capital. The interest on a 30 year mortgage versus a 15 year mortgage is nearly double. The PV of the FCF on that interest expense is in the millions for an average purchase price of $350K.
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Thanks - don't get me wrong, I appreciate the advice, but our company chairman also gave me advice which I've listened to as well. This house is not an investment for me - it's somewhere nicer than an apartment to live where I don't have a baby elephant living upstairs and dogs barking all day long etc. - my investment is still the company which should return vastly more than the house.
I really only plan to keep the house 5-10 years (I expect to retire back to NZ in that timeframe) so I'd have to balance it and see if the extra cost and interest in that period makes it worthwhile paying the additional $1200 or so a month in home loans.