Tips and definitions: Vacation home purchase scenario

The Investment Comparison table compares the investment value of the property against what you'ld have in the bank if you had put your money into a safe investment (paying the US Savings Bond Rate) instead.

In other words, this compares two asset values (after the selected number of years):

  1. What you would have if you sold the house (after paying of any remaining principal)
  2. What you would have if you had saved your down payment, and all the shortfall payments you made
Note:   Accounting for inflation yearly shortfalls refers to actual shortfalls, after accounting for increased costs and increased rents -- with increases due to inflation.
It does not mean computing a constant dollar value of payments

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