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Yep, the market is skewed by policy. You get to buy a house using the mortgage interest deduction and then you get artificially low property taxes as your prop
by jartelt 9y ago
Yep, the market is skewed by policy. You get to buy a house using the mortgage interest deduction and then you get artificially low property taxes as your property value increases over time (in CA). Meanwhile renters don't get any sort of "rent deduction" and get stuck paying higher rent when property values go up even though the landlord's property taxes don't go up much.
- votepaunchy 9y agoThe landlord deducts mortgage interest as a business expense, a cost savings which is passed on to renters.
- jartelt 9y agoLandlords are going to charge market rate for rent. They won't charge a lower rent if their property taxes are lower than they should be due to prop 13 and won't charge a lower rent if they are deducting mortgage interest.