3 ms·

That's ignoring the tax deductions for mortgage interest and property taxes as well as home value increase.

• JPKab 13y ago
  Correct. The tax deductions make it so that more something over 3% is stupid. Here that's what I find in the communities that aren't exurbs. Home value increase is not something I count on anymore. The housing bubble was never allowed to fully deflate. The Fed has kept interest rates extremely low to ensure this. The recent home value increase (my father is a real estate broker, so I'm into this stuff) is mainly powered by an artificially low supply of houses for sale. The reason the supply is so much lower than it should be is due to a large percentage of owners who are waiting for further price inflation to put homes on the market. Many of them are currently underwater. I really don't like the mortgage interest tax deduction. Its nothing but a scheme to enrich banks by encouraging debt. All the other bullshit about home ownership is warm, fuzzy, and absolutely not connected to reality.