[quote=thejq]
While I agree with your reasoning for owning a house, the logic behind your math is flawed. Right now you can deduct $24K as standard deduction, so only if your SALT + mortgage is more than that, you can use itemized deduction. Even if so, the benefit of that is the additional amount over $24K, when comparing to renting, not 100% as in your math.[/quote]
My bad, I forgot about the new tax law. My number was from my excel sheet I have that calculate this base on the older tax law. So, even if you take out the tax benefit, you’re still looking at ~$2700 for ITI vs $2600-2800 for rent. So, depending on your tax rate, the tax benefit would vary.
What make you think price would drop 25%? I think that would put ITI well below rent.
To put the numbers into perspective, at the bottom of the last crash, ITI for houses around my area were about the same as rent. So, for you to expect ITI to fall below rent, then you’re expecting price to fall below where it did at the last crash when comparing ITI vs rent. I just don’t see that happening.
