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>Makes that 300k look really much less appealing. It's a bit more complicated than that though: - A house mortgaged 10y ago isn't paying 5% interest. - A hou

>Makes that 300k look really much less appealing. It's a bit more complicated than that though: - A house mortgaged 10y ago isn't paying 5% interest. - A house mortgaged today isn't necessarily going to be paying 5% interest for the life of the loan, one can refinance if/when interest rates become more favorable. Interest rates are set to start coming down next month. - 20k/yr in interest isn't really 20k once one factors in the tax deduction on that money. - Making 300k by other means is a lot harder, requires a lot more capital or much riskier leveraging than an asset like a home.

gambiting 2y ago
>>- 20k/yr in interest isn't really 20k once one factors in the tax deduction on that money. You get any tax deduction on your mortgage payments???
- ProfessorLayton 2y ago
  On the mortgage interest, yes (U.S.)
  - gambiting 2y ago
    That's crazy. Wish that was a case here in UK.
    - ProfessorLayton 2y ago
      As a beneficiary, it's nice, but overall I believe it's unfair that homeowners get a tax break, while renters do not. Also it's a bit of a wash, as prices end up reflecting the tax break because bidders are ultimately going right up to their budget, and they take that into account. I wish there was enough housing so that it isn't seen as some sort of investment vehicle that distorts prices for basic human necessities.
    - bombcar 2y ago
      It's no longer a factor for many (most?) in the USA because the standard deduction went so high. And even then, only the amount above the standard deduction is effectively deductible, so it kind of is a wash. (Fun fact - if you have an expensive enough house it is better NOT to be married to your spouse, as if so each can claim up to $750k of mortgage, whereas as married it's only a total of $750k or something. I don't know the actual numbers, never been close to that.)

gambiting 2y ago

>>- 20k/yr in interest isn't really 20k once one factors in the tax deduction on that money. You get any tax deduction on your mortgage payments???

ProfessorLayton 2y ago
On the mortgage interest, yes (U.S.)
- gambiting 2y ago
  That's crazy. Wish that was a case here in UK.
  - ProfessorLayton 2y ago
    As a beneficiary, it's nice, but overall I believe it's unfair that homeowners get a tax break, while renters do not. Also it's a bit of a wash, as prices end up reflecting the tax break because bidders are ultimately going right up to their budget, and they take that into account. I wish there was enough housing so that it isn't seen as some sort of investment vehicle that distorts prices for basic human necessities.
  - bombcar 2y ago
    It's no longer a factor for many (most?) in the USA because the standard deduction went so high. And even then, only the amount above the standard deduction is effectively deductible, so it kind of is a wash. (Fun fact - if you have an expensive enough house it is better NOT to be married to your spouse, as if so each can claim up to $750k of mortgage, whereas as married it's only a total of $750k or something. I don't know the actual numbers, never been close to that.)