Timeline for How does owning a home and paying on a mortgage fit into family savings and investment?
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jul 19, 2012 at 16:04 | comment | added | user4127 | I am not arguing that just that reducing the amount put into your home by the mortgage interest deduction would be improper. I just did not air-quote the word investment in my comment as you did in your answer. | |
| Jul 19, 2012 at 15:27 | comment | added | Dilip Sarwate | @Chad I agree with littleadv and Scott Lawrence that a home is not an investment in the usual sense of the word. With an investment I have a choice of where to invest: Stock A or Stock B or Mutual Fund C etc... If I choose not to buy a home, I cannot invest that money elsewhere, I have to use it towards paying rent on a place to live. | |
| Jul 19, 2012 at 14:44 | comment | added | user4127 | The mortgage interest deduction does not reduce the money expended towards the home but rather reduces income tax liability. So unless you are going to include the taxes you pay on your income into the amount you invested in your home(and a case could be made for that) reducing the total amount invested in the home by the amount saved is not legitimate. | |
| Jul 16, 2012 at 23:13 | comment | added | JohnFx♦ | Don't forget property taxes in that equation. | |
| Jul 16, 2012 at 20:03 | comment | added | Cory Klein | Coming from paying a similar amount in rent about a year ago, I feel that my home has been a great investment so far. I have much more equity right now than I would have if I decided not to purchase a home. I feel that buying a home freed up a hefty portion of my income that I am now putting towards a low-risk low-reward asset. Also, I am selling my house soon, and anticipate my hard work in repairing and improving the home to have a return greater than what I spent (which was very little, considering I did the work myself). | |
| Jul 16, 2012 at 19:18 | history | answered | Dilip Sarwate | CC BY-SA 3.0 |