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From a strictly financial perspective, (measured over the next 20 year, for example) yes it would.
700/mo out the window for a place to lay your head for the next 20 years 700 x 12 x 20 = 168,000. vs the additional $14,000 one time tax cost and whatever interest you would pay on the amount financed... It's probably a no- brainer.
If you're saying you can pay cash with no financing it gets even better.
And finally, if that 400/mo would be additional income (if that's what you're saying) then it only takes less than three years and you've made back the tax cost.
Yes, buying now in a down market, we're not even counting in the growth you may have over time in the value of the home.
Unless I've missed what you're saying, this make a LOT of sense.
thank you. thats what i thot but couldnt figure out the numbers
yes, but i think the bank is going to loan me the money so i won't have to touch the retirement
Hi Suzanne! good to hear back from you ...
That's EVEN Better.
This is a case where I think leverage really works.
From a pure finance perspective, using other people's (the bank's)money to invest in something that will appreciate in price for a small interest cost (while leaving your money there to grow as well - using that money would have been what'scalled "opportunity cost") increases your real return.
The opportunity cost of the interest on the loan (especially when you get to deduct that interest from your income for tax purposes) is MUCH smaller than the opportunity cost of (1) the tax penalties on your retirement PL:US (2) not having that money there growing for you.
GOOD ... FOR ... YOU!