Ben:
Great concept. I think you can improve this argument if you used more realistic figures. For example paying off $500,000 on the starter home at 2.5%. Both the amount of the paid off loan and the rate are suspect. To pay off 500k$ of principle would involve about 20 years worth of payments. Let’s say they refinanced along the way, the rate would be closer to 3.5-4% and the payments much higher.
At the new place the rate is likely to be 3.75-4.25% or higher.
Property taxes are usually running around 1.5%-1.8%.
Would love to see this redone with the new figures. I think the story would be the same.
Walter