Ep 7 Advanced: Norm and Norma Consider the Impact of Buying a Home on Achieving Financial Independence
Advanced Real Estate Financial Planner™ Podcast
Welcome to the Advanced Real Estate Financial Planner™ Podcast. I am your host, James Orr. This is the advanced analysis of Episode 7.
In Episode 7, Norm and Norma considered the impact buying an owner-occupant home had on their plan to achieve financial independence investing in stocks.
In the simple analysis we used fixed assumptions for property price appreciation, rent appreciation, stock market rate of return, inflation rate and mortgage interest rates.
For the advanced analysis we’re using the same random rates of return we’ve used in previous advanced analysis.
We will attempt to shed some light on the following questions:
How much impact does random mortgage interest rates have on Norm and Norma’s ability to get an owner-occupant home?
How much does it impact their ability to save money from their paychecks and use that money to invest in the stock market?
How much impact does inflation have when a good portion of their personal expenses (their mortgage payment) is now exempt from the impact of inflation?
How much of an impact does the home appreciation rate have on their owner-occupant home?
How much of an impact does the variable stock market rate of return have on them achieving financial independence… especially when buying an owner-occupant home reduces how much they need to be earning to be considered financially independent?
How does it affect their speed of achieving financial independence?
How does it affect their net worth?
Let’s begin.
Number of Properties Purchased
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