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People keep quoting this as religion. Making up numbers: If I only spend 50% of my take home and part of that 50% is going toward my fixed rate mortgage, is my
by scarface74 3y ago
People keep quoting this as religion.
Making up numbers: If I only spend 50% of my take home and part of that 50% is going toward my fixed rate mortgage, is my spending power down by 5%?
- taurath 3y agoIf inflation on what you spend your money on is 10%, then yes. The price for eating out has increased 15% in a single year. Its not hyperbole. Also this assumes someone who's able to afford a mortgage
- throw9away6 3y agoYes, but your investment from the home made up some of the difference possibly depending on when you bought. That’s a different source of wealth and one not everyone has.
- scarface74 3y agoNot an investment - more of an inflation hedge. Yes I realize that a primary home can be considered an investment. But that’s an often argued rabbit hole that I really don’t want to go down.
- throw9away6 3y agoIt’s a leveraged investment with a tax benefit and some government subsidy. Living in it is the tax Benefit portion.
- scarface74 3y agoIt’s not really a tax benefit for most people. 87% of taxpayers take the standard deduction. That means at most 13% of taxpayers take advantage of the homeowner’s tax deduction on interest.