Daughter wants to buy a house

[rodi]

Why is 7 years the magic number?

The reasoning I've seen for the 7 years magic number is that there are sunk costs at the time of purchase (loan fees, escrow fees, etc.) And even higher costs at the time of sale (realtor costs). You need some time to ammortize the sunk costs...

 

[firemediceric]

The reasoning I've seen for the 7 years magic number is that there are sunk costs at the time of purchase (loan fees, escrow fees, etc.) And even higher costs at the time of sale (realtor costs). You need some time to ammortize the sunk costs...

Thanks for the response. Although reasonable I guess that is an old rule of thumb and depends on how hot the market is. Obviously this record growth has allowed buyers to recoup costs faster than ever before.

 

[MC Rider]

Also moving is expensive, if you are no longer 18 and all your stuff in in a duffle bag and footlocker.

 

[RobbieB]

Yup, lotta fees involved in selling and buying RE. Not to mention the stuff you have to move. Or all the little "customizing" that happens.

Your way or the "resale value" way. It really is an anchor on your ass.

But do you love an anchor or hate it?