gjm comments on Rational Home Buying - Less Wrong

99 Post author: Yvain 27 August 2011 12:15AM

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Comment author: Shalmanese 27 August 2011 09:32:55AM 12 points [-]

Another failure of rationality is failing to understand the difference between investment goods and consumption goods. A $745,000 house may cost more to buy than a $710,000 house but you're also likely to be able to sell it for more as well. The "true" cost is not $35K, instead, it's a complex calculation of marginal mortgage payments, expected rise or fall of housing prices and cash flow considerations.

Comment author: gjm 27 August 2011 10:17:20AM 3 points [-]

Is it also a failure of rationality when one doesn't notice that someone else has already made all the points one's making? :-)

Comment author: brazil84 27 August 2011 05:23:28PM 1 point [-]

I would say yes in the sense that you can probably learn more by reading other peoples thoughts carefully than by jumping in to post your own thoughts. But what if your main goal is to prove to yourself and others how smart you are? Or to win approval from others by posting intelligent points?

The best would be to do both reading and posting, I think. But like anything else, if you are pursuing multiple goals simultaneously, one can expect that sooner or later those goals are likely to come into conflict with eachother.