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Buying a house gives you extreme leverage, though, and with extremely favorable tax treatment. You can put as little as $25k down on a $500k house and when the
by dionidium 5y ago
Buying a house gives you extreme leverage, though, and with extremely favorable tax treatment. You can put as little as $25k down on a $500k house and when the land underneath it increases in value you get to keep all the upside and pay no capital gains on up to $250k in profit ($500k if you're married). And you'll pay, what, a fixed rate of 3.5% for 30 years?
If you find a bookie giving you terms like that, then you should take them.
- philipov 5y agoThis is a conversation about hard economic times, when the house could very well depreciate in value, and you'll be stuck with a mortgage worth much more than the house. Remember 2008? It was caused by people assuming like this that the value of houses always goes up.