How much did you pay for your home? The answer should be...

[ShamsWoof10]

I DON'T KNOW I'll HAVE TO CHECK!!

Do you catch people doing this also guys..? I ask someone how much did you pay for your house and always always they will give me the sticker price... Unless you paid cash for it that is WRONG!!! I.E. my cousin after I ask this says 225K and after asking him two more times he says "I don't know man what then?" I said let's find out and we added up all his payments to date minus what he got back in taxes from the write-off which wasn't much plus the remaining principle.. After 6 years in we estimated he had paid over 330K so far... Before we did the math he was saying he could get 300K for it now... Now what if the prices fall while the price he pays on his home keeps going up..?

[vanzack]

I DON'T KNOW I'll HAVE TO CHECK!!

Do you catch people doing this also guys..? I ask someone how much did you pay for your house and always always they will give me the sticker price... Unless you paid cash for it that is WRONG!!! I.E. my cousin after I ask this says 225K and after asking him two more times he says "I don't know man what then?" I said let's find out and we added up all his payments to date minus what he got back in taxes from the write-off which wasn't much plus the remaining principle.. After 6 years in we estimated he had paid over 330K so far... Before we did the math he was saying he could get 300K for it now... Now what if the prices fall while the price he pays on his home keeps going up..?

But he really didnt pay what you are saying he did because he got the present value of the house, without putting up the money for it.

If you wanted to make a point that the difference between a rate of return and the interest he paid is actual cost, then fine, but you cant make the inference you are making because the time value of the loan is worth what he is paying for it in most circumstances.

[BigBollocks]

I don't have that problem because I don't go around asking that to acquaintances and the like. Grilling people on the cost of their home, car, previously salaries, etc. is a terrific way to get off on the wrong foot with many people.

Vanzack is of course right in regards to factoring in time value...

[ShamsWoof10]

I don't have that problem because I don't go around asking that to acquaintances and the like. Grilling people on the cost of their home, car, previously salaries, etc. is a terrific way to get off on the wrong foot with many people.

Vanzack is of course right in regards to factoring in time value...

This wasn't just anyone mind you it was a cousin of mine who I hung out with everyday and in this debate it was quite fitting not to mention he told me many times how much it was...

With that said I would say all three of us are wrong... As for my question as it states literally the sticker price is right... He takes a loan out to pay that sticker price and owes on the loan... I guess I should word it how much did the loan cost you to pay for your house..?

I do agree that I should make the point in that the interest is actual cost... I will agree I was incorrect there...