Quote:
Originally Posted by Topspinmo
I can ask what I want, that don’t mean someone will pay. Anything used only worth as much as someone will pay. The rest is just guidelines.
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Absolutely theory versus reality . . . . the question I was asking is about how does one get their money back if the bond is paid off early. Everyone is different, and setting the price above the market means that you are expecting/hoping that a buyer comes along who agrees with you.. . If you are the only house in the desirable neighbor, there is no comparable, therefore the probability increases of the sale.
There are two main issues affecting the pricing of a house relative to market:
the number of similar houses for sale
the motivation of the seller.
The higher motivated the seller, the lower the price. Time is costing him/her money he or she doesn't have.
The should you pay off the bond is a cash flow question. Can you afford the bond payment and the potential loss of the asset and income from it in a trade off against more free cash flow against income, mostly SS and RMD. Not paying off the bond when one can risks the future increases of the remaining cost of the life style increasing faster than income, and therefore reducing free cash flow in the future.
That is the counter point to its a fixed amount, and therefore will be covered by income inflation. What is not taken into consideration is that not all incomes and expenses inflate / deflate together at the same rate.
man, those down hill skiers are crazy!