Sounds dangerous...not to mention kinky...Count me in!Thompson said: I like to keep the renters in a dark room as long as I can
Actually, I believe that Mohican can afford to buy the property he is renting outright.Johnny said: (All sorts of stuff, very loudly.)
Owners/Buyers: Decisive He-men.polemics said: Me, I always buy. And no regrets.
Here is how opportunity cost figures:Rentah, Mortgage cost does not necessarily equal opportunity costs.
In the case of the tenant, it is the fact that he can live in same/similar home, but has "extra" money that he can invest elsewhere (or stuff in his matress for all that matters). I don't know if "opportunity cost" is the best term to describe this. In any case, we need to make assumptions about appreciation/depreciation in order to get definitive answers.edit: add: The only way it would make sense is if the Tenant can get a better return elsewhere.
[quote]Actually, I believe that Mohican can afford to buy the property he is renting outright.