my local credit union explains why I should buy instead of rent

The first point can’t be said loud enough: you’re paying off someone else’s investment while they sleep or live their best life in Bora Bora.

If land was owned in common and ground rents imposed on all property, that money would be re-invested in the things we need, making the land work as hard as we do.

And that second point tells you all you need to know about how property ownership is subsidized: you can lower your tax burden, while building up wealth at the expense of your neighbors. If you’re paying a $1,000/month mortgage, most of that will be tax-deductible interest: call it $900 which over a year is more than $10,000, taken right off the top of your taxable income. And your buying power is increased dramatically because of how mortgages are structured: you pay almost all interest at the beginning, all of it deductible, but Uncle Sugar will give it back at the end of the year. Pay $2,000 a month, get $1900 or more of it back, a little less each month, but as they point out, your payment never changes on most mortgages.

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