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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (9411)	9/18/2006 5:37:48 PM
From: Moominoid	Read Replies (1) \| Respond to of 218863

It's a dollar for dollar deduction against gross income, which, for one thing, gets us out of AMT problems, which is a big savings in its own right, e.g., we can deduct almost 100% of the kids' college expenses rather than being phased out. Yes so say you pay $10,000 in property tax then you get a $4000 or whatever tax rebate you still pay $6000 net. We rented for many years because we thought we were better off that way, but once we actually discovered the advantages to home ownership in the US, we were astonished. The interest on mortgages is a very cheap loan after the tax deduction. In my part of the US probably it is a wash between owning and renting when you do a proper financial calculation. But in high priced areas renting definitely seems to be cheaper at the moment. Owning is fine if your additional utility from being able to modify your house and having better security of tenure is worth that much to you. We rented for many years because we thought we were better off that way, but once we actually discovered the advantages to home ownership in the US, we were astonished. No it won't and if you plan on living there long term and like it there is no reason to sell. That OTOH doesn't mean renting isn't a viable alternative for someone looking to be a buyer or renter at this point. I think Jay thinks there is going to be hyperinflation and interest rates go sky high... but I actually have the opposite outlook for the near term.