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Palo Alto property owners rejoice; subsidizing demand is a sure-fire way to drive up prices.

• rollulus 10y ago
  Exactly. Here in the Netherlands, housing is also subsidized: you can roughly subtract the mortgage's interest from your income before tax is calculated. The only result is that houses are more expensive.
  • runholm 10y ago
    The purpose of that system is to have more people owning their own home and fewer people renting. It assures that there is a cap on how much of the housing is owned by companies for the purpose of renting it out.
  • brianwawok 10y ago
    Oh mortgage tax deduction is old hat in the states, this is on top of that.