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rdmcfee | 9 years ago

Except your mortgage interest may also be 3% so you may realize nothing on your investment.

Your interest costs will be proportional to your leverage so you need the asset to outperform your interest rate to realize anything.

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jly|9 years ago

Yes but this is a home, and not some generic investment.

I can either live in the home, saving livings costs (rent), or I can rent it out and generate income, which will pay for the interest on the loan.

runT1ME|9 years ago

Good point! I meant for your primary residence, you're paying that interest regardless of if you own a home or rent. So I don't factor that in when it comes to a primary residence. This is a different story for investment properties.