Aren’t buyers foolish to go along with large credits? They will have to pay higher RE taxes for years to come
1% of $50,000 is $500.
Hmm, I get $50,000 today. And pay an extra $500 on the taxes at the end of year. And next year, and year after that…
Care to calculate the NPV on that cash flow base on inflation? Hint, assuming they spend $30,000 of it and the rest just earns enough to pace inflation, breakeven on the NPV is just short of 55 years out. If they don’t do anything with it, the $20,000 pays the taxes for 30 years.
