Tips and definitions: Vacation home purchase scenario

The Cash Value is how much money you would have if you had invested your down payment, and all the shortfalls, in a savings account that paid the US Savings Bond interest rate.

Basically, this is the opportunity cost of buying a house. You can compare it directly to the net property value.

Note that the cash value and the net property value do not account for capital gains tax or income tax on interest.

Close