I just skipped over your data. I did not do detail calculation to arrive at specific numbers, but don’t forget something: The tax savings are not dollar-for-dollar federal tax credits in calculating income taxes. Basically you have to spend three dollars to get one dollar tax benefit – that’s the gist. Also, with the monthly rental payment, you get shelter. The principal paydown should be factored in(not ignored or deducted) because it still adds to money coming out of your wallet, though you are getting shelter (altghough cheaper) as equivalent benefit.
Counting all the excess fluff as all consumer expense, to simplify the whole thing, principal paydown should also be added as consumer expense, not an “investment”. Don’t ignore it because it adds to your pain.
In addition, Mello-roos is not tax deductible. But everyone does it. Since you are high-earner, you start to pray you would not get audited so that you would not get exposed.
I don’t know if I am making sense to anyone – no big deal to me coz I get it. (And today I am lazy, excuse me.)
