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Only when there have been other factors influencing it.
I'm not sure what you don't understand about this. Maybe a different example would help. If you go out to buy a car and you intend to finance it, which is more important, the monthly payment or the actual price you pay for the vehicle?
If you buy a $40,000 car at 10% interest your monthly payment would be $850 a month. If your interest rate is 3% your monthly payment would be $719. Get it now?
What's your answer to the highlighted question? Is the payment or the price more important?
What's your answer to the highlighted question? Is the payment or the price more important?
I'm not sure why you would ask that. If you are a cash buyer the price would be more important, if you are financing the car and can only afford a certain payment the monthly payment would.
a single individual's ability to buy a property does not define that property's value, the market does. Just because someone makes an offer and tells the seller that's all they can afford doesn't define what the FMV is that the seller can achieve from another buyer.
When did I say otherwise? The "market" is made up of buyers and sellers, right? But it becomes complicated In markets like LA and San Francisco when you have all cash foreign investors competing with local residents for single family homes because the would be homeowner almost always loses. https://www.washingtonpost.com/reale...=.a2e5a63e8f6e
I'm not sure why you would ask that. If you are a cash buyer the price would be more important, if you are financing the car and can only afford a certain payment the monthly payment would.
You've changed the highlighted portion from how you originally asked it.
I asked the question, because the answer tells a lot about someone's understanding of time value of money principles, as well as how they make decisions about financial matters.
You've changed the highlighted portion from how you originally asked it.
I asked the question, because the answer tells a lot about someone's understanding of time value of money principles, as well as how they make decisions about financial matters.
I didn't change anything, but I'm not going to waste my time taking your test about my knowledge of financial matters
I didn't change anything, but I'm not going to waste my time taking your test about my knowledge of financial matters
Actually, you did change it.
Your original statement that I responded to:
Quote:
Originally Posted by 2sleepy
Only when there have been other factors influencing it.
I'm not sure what you don't understand about this. Maybe a different example would help. If you go out to buy a car and you intend to finance it, which is more important, the monthly payment or the actual price you pay for the vehicle?
If you buy a $40,000 car at 10% interest your monthly payment would be $850 a month. If your interest rate is 3% your monthly payment would be $719. Get it now?
Your modified statement:
Quote:
Originally Posted by 2sleepy
I'm not sure why you would ask that. If you are a cash buyer the price would be more important, if you are financing the car and can only afford a certain payment the monthly payment would.
Surely you can understand that the two statements are very different. The addition of "can only afford" in the second statement drastically changes it.
I wasn't testing you on financial knowledge. You've made your level of financial knowledge abundantly clear on multiple posts.
My mortgage deduction is worth something like 1500-2k a year.
The price of the property was perhaps slightly affected by that, but only slightly.
When people say that buying a house is a good financial move because of the mortgage interest deduction, it reminds me of the credit card ads that say you should spend more money to "earn points." LOL!
... When people say that buying a house is a good financial move because of the mortgage interest deduction, it reminds me of the credit card ads that say you should spend more money to "earn points." LOL!
My Dw used to keep track of all our spending. She wanted receipts for every penny spent every month, so she could use the data to itemize our income tax filings.
After years of doing this, I got to using a CC when I was on the surface, and she noticed how our monthly CC statements documented the spending. Then she wanted all spending to be done via a CC, so that at the end of each year all of our spending could be documented on 12 monthly CC statements [instead of boxes filled with receipts].
We paid the balance in full every month, so there were never any interest charges, so I saw no good reason to go against her reasoning.
Then CCs came out that offered 'air miles', and we had to schedule vacations to fit before the miles expired.
Hard to believe the counter-factuals being posted here.
In many cases, once people go off-track, they'll double-down on nonsense hoping to cover themselves somehow.
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