Question

You want to buy a new house. Your options are a tradition house for $350,000 and a 3D printed concrete house for $100,000. These houses are built over a plot that increases 5% every year. You want to keep this house for 20 years and make a bit of money at the end. Which house would be the better option if both homes lose 2% of its value, but also increase due to an inflation of 3.22% every year?

Answer 1

In the above question, one house is worth $350,000 and another one is worth $100,000. Other facts for both the houses are same, like -

1. both house are built over a plot that increase 5% every year

2. both lose 2% of their value and also increase 3.22 every year due to inflation

Hence in terms of % gain or loss, it does not make any difference which house to invest in. It would depend on factors like if one has sufficient funds to buy or would need to take a mortgage to fund the additional $250,000 for the tradition house.

In above case one can invest in any house depending on funds available and both will give equal return.