Total costs of ownership (TCO) - 08Apr2023
Total costs of ownership (TCO) have come up a few times recently. This is an important concept that we should bear in mind for our purchases, especially those big-ticketed items. It is not just about the ability to put in the deposit and service the monthly instalments. We should factor in items apart from the purchase price, interest rate changes impact and others. Total costs of ownership TotalSense - total coats of ownership This is a good summary provided by TotalSense on TCO. The costs components comprise purchase, repairs, maintenance, upgrades, service, support, security & training. There is a news article and a few Twitter posts that caught my attention. News screenshot from US News article FHA recent approval of 40-year mortgage terms Let us look at an example of a property in the USA using a great article from TheBalance. Screenshot of an article from TheBalance This is the assumption used in the example by TheBalance: Estimate assumes 10% down paym...