Jill buys a house for $975k, lives there for exactly 10 years and sells it. Suppose Jills
Fantastic news! We've Found the answer you've been seeking!
Question:
Jill buys a house for $975k, lives there for exactly 10 years and sells it. Suppose Jill’s annual cost of ownership is exactly equal to the annual rent she would have paid to live in the same house. Suppose the price of Jill’s house grows 3.5% annually.
Compute Jill’s annual IRR from owning net of renting.
Buying expenses are 5% of purchase price and selling expenses are 8% of sale price.
Compute Jill’s annual IRR from owning net of renting.
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date: