Quote:
Originally Posted by c1pher
I am in essentially the exact situation. The deduction eliminated the incentive to own property unless you’re buying big. I’m certain that’s part of the plan since banks are buying real estate and getting into the rental business.
Even with the previous deduction, unless you had some hefty appreciation, you really don’t make money buying a home after all the interest, maintenance, taxes, insurance etc is paid. If your home appreciates at the same rate as the interest rate on your mortgage, you’re losing money.
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I haven't run the numbers as to if I'm losing money by holding on to second home with the loss of the deduction. I suspect I'm at least breaking even. I bought before the last boom in housing and got in at a low interest rate; 3.25% 30 years fixed in 2012. With the down payment I put in, my monthly payments are just over $1000 all in.
But what I can't put a price/value on is how this house has been my get away sanctuary with all the chaos that's been occurring in my life over the past couple of years.