# Real estate is NOT a great investment **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [February 22, 2015, 8:27pm UTC](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363 "2015-02-22T20:27:36Z")\ **Posts on this page:** 4\ **Page:** 5
**Author:** ![Dangerosa](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Dangerosa](https://boards.straightdope.com/u/Dangerosa)\ **Post date:** [February 25, 2015, 11:25pm UTC](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363/81 "2015-02-25T23:25:40Z")
> [@Fotheringay-Phipps](#): > > I’m not a tax expert, but I once looked into this and my understanding is that mortgage interest can only be written off if it’s used to buy or remodel/extend a house. If you have a paid off house and take out a mortgage for investment, it’s my understanding that this mortgage interest is not tax deductible as home mortgage interest. > > However if you’ve used the mortgage for investment purposes, then the mortgage can be deducted from the investment profits as investment interest expense (to the extent that it’s less than the profit). According to my CPA, we are good. If I’d bought muni’s we wouldn’t be. But good ole’ stocks. its my principal residence. And I didn’t take out the mortgage to buy stock, I took it to buy a second home, then sold the second home and didn’t bother to pay off the mortgage on the primary residence. ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [February 26, 2015, 2:21am UTC](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363/82 "2015-02-26T02:21:57Z")
> [@bump](#): > > Not to hijack, but no wonder they have huge budgetary shortfalls! That’s a truly crazy way of assessing property taxes. Yes. In our defense, it came about because we have a truly crazy constitution where the citizens get to vote directly on legislation. It has not exactly been a font of well-reasoned policy. ---
**Author:** ![Siam\_Sam](https://avatars.discourse-cdn.com/v4/letter/s/d78d45/32.png) [@Siam\_Sam](https://boards.straightdope.com/u/Siam_Sam)\ **Post date:** [February 26, 2015, 2:41am UTC](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363/83 "2015-02-26T02:41:04Z")
> [@The\_Second\_Stone](#): > > Back in 07 when real estate collapsed in California, I bought a large (6 bed 4.5 bath) house for the same monthly payment I was making on my 2 bedroom condo in a less desirable neighborhood. I would not have done this if I had children’s schooling to worry about. I have two roommates currently, with room for up to two more. Utilities are higher and property taxes are higher. But no HOA and roommates make me happier in general. The value is about even to when I bought it, however, refinancing leaves my monthly payment about $300 less. > > You’ve got to live somewhere. You might as well consider it an investment. We’ve stayed at a bed-and-breakfast on the North Shore of Kauai that’s owned by a nice couple who bought it in the wake of Hurricane Iniki in 1992. So buying property in the wake of a natural disaster also pays off. ---
**Author:** ![get\_lives](https://avatars.discourse-cdn.com/v4/letter/g/ecb155/32.png) [@get\_lives](https://boards.straightdope.com/u/get_lives)\ **Post date:** [February 26, 2015, 3:44am UTC](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363/84 "2015-02-26T03:44:53Z")
I have a 15-year mortgage at 3.75%. my very first payment was mostly principal. I put 20% down, most of which was a gift from my in-laws. My house is near a college, so therefore easy to rent. I’d say we made a smart choice. 😉 [Previous page](https://boards.straightdope.com/t/real-estate-is-not-a-great-investment/713363.md?page=4)