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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (1320)	1/10/2002 3:03:01 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

I disagree. It depends on the location and the person's filing status. A single person in the 15-20% marginal tax bracket doesn't get much more in terms of a deduction then the standard deduction to reduce the added interest, taxes and insurance. I've done any number of scenarios for friends using all the tax advantages and whatnot and in some locations where owning housing is expensive people are better off renting, a lot better off. Rents in aggregate cover the cost of housing, people pay a premium to live in their own house. Unless you are lucky to have bought during a favorable period in a location where appreciation is above the norm, you get about an 8% yield on your money even when you figure in the tax advantages of rolling up the cap gains. You can do better than that in any number of investments over time.