Just been chatting with a fried who lives in NYC and says that in the US your PPOR mortgage interest is tax deductible. Crazy! How does that work? How does their govt afford it?
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What about the fixed mortgages of 30 years. Imagine fixing at 4.2% for 30 years - sign me up, sounds like a great deal.
Just been chatting with a fried who lives in NYC and says that in the US your PPOR mortgage interest is tax deductible. Crazy! How does that work? How does their govt afford it?
The days of the non-recourse loan in the USA are well and truly over. That was pre-GFC. US Treasury saw the end of the scheme that saw banks drop their losses onto Govt who bailed them out.
The days of the non-recourse loan in the USA are well and truly over. That was pre-GFC. US Treasury saw the end of the scheme that saw banks drop their losses onto Govt who bailed them out.
Want another one? Wife and I love France and we thought about buying a Paris apartment or country manor for rental and personal use. Prices are so low!!
BUt.... in a sale or even inheritance, the new owner pays CGT on the sales price/valuation. Can be up to 65%. So a manor in Loire valley on 10 acres costs say $600K but real cost could be over $1M.
So because the USA market failed then AUS will fail! Ignoring completely, either on purpose or ignorance, the many many factors that means you are comparing Apples with Zucchinis.
The PPOR interest deduction looks great, but what if you had to pay 2% of the market value of your PPOR in property taxes each year? Or, for that matter, to have income tax at the Federal, State and sometimes Local levels?
I would rather pay tax at the local level and have an effective system of government that can pursue policies at the local level than to pay tax "once" but have a federal government with a monopoly of power over the entire country. This is actually a rare system in most of the developed world.