Talk of The Villages Florida - View Single Post - Depressed Housing Market?
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Old 03-23-2011, 08:47 AM
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Default New or Used
IMHO homes are like cars where new costs more than used. Were they differ is that the vast majority of cars lose value as they age WITH ONLY A FEW THAT BECOME COLLECTIBLE. However many more used homes are more valuable than new homes with TV being a strong case for this. Any finance major could do a PV analysis of cash flows for a 3, 5, 8, 10, and 15 year period and the cost of ownership on the used home will win out 99 percent of the time. There is a high price to be paid to smell new paint, have scratch free counters, and stain free garage floors. Or to put it another way you get to pay thousands of dollars for the privilege of being the first to stain your garage floor with golf cart battery acid. I myself enjoy a two week cruise in the summer to Alaska.