Forbes Quote on Reason to "Put Your Kids In a House"
2011 Jun 17, 2:31pm 3,819 views 15 comments
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FortWayne
2011 Jun 20, 5:34am
Poor people tend to have nothing because that's the exact advice they listen to that article brought up. Poor chaps tie up all their money in a wooden box, for which they pay 30 year toll to the bank plus expenses and than wake up one day realizing their life amounts to nothing.
I bet Forbes family and others would go ape shit if all of a sudden the poor rised up and started opening up competitive businesses instead of wasting their money.
If you put the same capital into a home you will get a dividend in the form of living space - and this dividend is tax free.†(then goes to discuss capital gains exemption for real estate and not stocks)
No, if you put the same capital into a home, you pay 3X interest instead of 1X taxes. That's some genius finance there!
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"There's a powerful tax advantage to owning rather than renting, and it reaches well beyond the mortgage-interest deduction that is usually thought of as the prime homeowner goodie. The benefit is this: If you put capital into stocks and bonds and use the earnings to pay rent, you'll owe tax on the earnings. If you put the same capital into a home you will get a dividend in the form of living space - and this dividend is tax free." (then goes to discuss capital gains exemption for real estate and not stocks)
What!?!?!?
The Forbes articles does not mention property taxes. Property taxes are levied on the principal and return every year and they are a very destructive tax from an investment return perspective.
And since when is a structure to live in a "dividend".
#housing