Quote:
Originally Posted by Kenny B!
You Americans are so fortunate to be able able to write off your mortgage interest, we aren't so lucky in the great white north.
The only way we can deduct interest is if it's for an investment property, not our main residence.
Good on you will for putting so much time into your answers.
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thanks... you bring up another good point, there has always been rumblings about trying to get that tax deduction removed. I think I remember reading something about Obama trying to do away with it or limit the people who can take the deduction. Tax deductions like this are not set in stone, and while I don't think they would take it away, it is possible. Which would take away factoring in the tax deduction into the "invest the money " strategy making you have to make an even larger return with the money vs using it pay down your mortgage.
Also, the invest the money strategy really is for should you get a loan in the first place vs financing it. We talking about a couple hundred a month here. It's more applicable when you looking at do I get a loan for 500K at 5% and invest my own 500K into something else and try to make 8-10% or do I just pay cash for the property and save on not having to pay interest each money.