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Politics : Idea Of The Day
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To: IQBAL LATIF who wrote (30243)12/27/1999 10:37:00 AM
From: MeDroogies  Read Replies (1) of 50167
 
Depending on your cash flow, debt is a good thing. Since I don't have cash flow problems, regardless of tax relief...mortgages are a loss to the bank. The reasoning that people use all the time is "I need the tax write off". The write off is ALWAYS much less than the actual interest payment, which if you weren't making to a bank would be going in your pocket.
It's an accountant's trick to make people think that mortgages are a beneficial thing to have.
Now, if you need ready cash (perhaps to buy a car/boat/another home) and your cash flow is poor (or will be hampered by the purchase), then taking out a mortgage (or a home equity loan) is very beneficial because it is a low cost loan AFTER taxes.
In most cases, however, there isn't much of a better return on your money besides paying off a mortgage. Except when you have a stock market that is returning 20% a year...............
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