[quote=livinincali][quote=AN]I don’t see why it’s not apple to apple comparison? PITI – tax deduction would be less than rent. You’re also paying ~$600/month toward principle, while rent, it’s all gone. I guess if you want to have a pure rent vs mortgage, then compare ITI – tax deduction vs rent. This particular house, ITI with 20% down is ~$1500/month. ITI with 10% down is ~$1600/month. That’s $500-600< than comparable rent. Depending on your tax bracket, you can add ~$200 to that number as well on the buying side for tax deduction.
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Probably need to include transaction costs and maintenance if you're going to give yourself the benefit of realizing the principal part of the payment.[/quote]
Agreed. It's also questionable to deduct the principal payment from the expenses (or add it to equity) because that doesn't determine how much equity one has in the property. The market determines that. You can pay $1,000 toward principal every month, yet still lose $500+ each month in equity. OTOH, you can have an interest-only mortgage and see your equity shoot up $2,000/month. With real estate, timing is everything.
