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Mortgages are a special case because the debt is usually tax-subsidized, and depending on the state, one effectively has the option of giving the house to the b
by h4nkoslo 10y ago
Mortgages are a special case because the debt is usually tax-subsidized, and depending on the state, one effectively has the option of giving the house to the bank in lieu of paying the remaining balance.
- bbcbasic 10y agoThat is a difference in the US. In UK/Australia you pay the mortgage from your post-tax salary. Encouraging some people in Australia to perversely rent their house out and go and rent a similar house (sometimes identical apartment in same block!) from someone else, in order to get the interest offset against tax. In the UK it is even worse, as you can only claim 20% of the interest cost on an investment property even if you are paying 40% tax on the rental income (!!)