Have you ever been at a party or a gathering of some kind where somebody offers well meaning solutions that are so stupid you realize that you are in the presence of a person who is completely out of touch.
No, no…I am not talking about attending a joint session of congress.
I am referring to your local condescending philanthropic spirit who has no real way to identify with the people to whom their social nuggets are directed.
They are everywhere, including Chicago, where the purveyors of pretentious prattle are alive and kicking. Offered wholesale this month is the solution to $4 per gallon heating oil costs. Wait for it…INSULATION!
Yes, if you are concerned about the affordability of heating oil, fear not. You can buy insulation and can have a reasonable ROI on the heating oil savings over, well…who knows how long it could take.
Of course ROI is very chic and sexy, especially to those who have no friggin’ understanding of how to calculate it properly. It is not as simple as taking into account the total cost of a given item and run specific line item savings correlated to savings assumed to occur.
I am not going to give you the formula (yes, I have a Series 66 license and know how to do it, thank you very much) but there are many things involved in it.
One would be inflationary factors and price increases to the $4 per gallon heating oil itself.
And there is the rub. You cannot run an ROI on a static investment which depreciates against a highly volatile commodity, unless that investment is a direct substitution in whole or in part.
Well you can, but it is very involved if you want to be accurate.
That’s like trying to explain the effect of gravity on light by dropping a flashlight.
Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island real estate appraisers provide independent residential real estate appraisals for a variety of purposes.
Here’s the original article…Why your house might need an extra layer