|
Loan interest increases the actual price paid for a piece of real estate 2-4 times.
Over the span of time, a $100K price tag is actually a $300K pricetag. You can check the math for yourself using a mortgage calculator.
But with higher income/wages, paying this extra interest makes sense because the deduction drops your income tax bracket. Inflation also decreases the value of this interest over time...as long as wages increase accordingly.
__________________
Meanwhile other things are still happening.
|