Income used to pay interest on a home is not taxed (up to a limit). Paying interest (not principal) on a home mortgage is pretty much money down the drain (no wealth accumulation, a fee for the right to hold the debt). In this way, interest payments for housing you own are somewhat comparable to rent payments for housing you don't own.
The fact that income paid to interest is not taxed, yet income paid to rent is taxed can create a significant advantage to owning versus renting.
The fact that income paid to interest is not taxed, yet income paid to rent is taxed can create a significant advantage to owning versus renting.
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