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Problem 5 Intro You buy a house for $200,000, with transaction costs making up $0.6% of the purchase price. After 5 years, you sell the
Problem 5 Intro You buy a house for $200,000, with transaction costs making up $0.6% of the purchase price. After 5 years, you sell the house, paying the broker's commission of 3%. Owning the house saves you $3,000 per year, the cost of renting an equivalent house. Your cost of capital is 5%. Part 1 | Attempt 1/3 for 10 pts. At what rate of annual home price appreciation do you break even, i.e., obtain an NPV of zero? 4+ decimals Submit
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