One Disadvantage of Refinancing a Property Instead of Selling the Property

question 3

True/False

One disadvantage of refinancing a property instead of selling the property is that taxes have to be paid on funds received by additional borrowing,but no taxes would have to be paid if the property is sold.

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Definitions:

Private Good

A product or service that is exclusively owned and consumed by the individual or entity that purchases it, characterized by rivalry and excludability in consumption.

Excludable

A good or service is considered excludable if it's possible to prevent non-paying consumers from accessing it.

Rival

In economic terms, a good or service that cannot be enjoyed or consumed by more than one person at the same time.

Artificially Scarce Good

A product or service whose supply is deliberately limited, often to maintain high prices or for other non-market reasons.