Quote:
Originally Posted by Ayles
The house next door was bought with cash ($840k) and turned into a high end rental for $4k a month. Lawn service and hot tub servicing are included in rent. Gardners show up once a week.
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Tax, insurance, maintenance and opportunity cost of money adds up to 5-7% of house cost per year. That’s assuming no mortgage. 840k house costs a minimum of 3500/month just to hold. With gardener and hot tub I guess they’re counting on appreciation?
Owning costs more than renting.
Structural reason is I can deduct expenses on my rental house, roof, windows, furnace, painter - all reduces my taxes. Pretty sweet deal. Why is it I can’t deduct the same expenses for the house I actually live in?
Fed tax policy is to subsidize the rich landowners.
I’ve thought it might be good local tax policy to require all federally deducted property expenses to be taxed at 100% to local county. Would probably take care of many rental homes and airbnb pretty darn quick.
If we want to subsidize housing there’s gotta be a more efficient way than giving money to the rich owners to encourage them to rent out properties for less.
I’m benefitting and it feels like a giant scam