On 20 Sep 2005 18:44:10 -0700, wrote:

"On the other hand, as interest only, you are basically a renter. "

That's not true. Even paying interest only, an owner benefits from the
increase in a property's value over time. And for just about
everywhere, it's been a pretty hefty increase in the last decade. If
you bought a property and paid interest only, you'd still be looking
pretty good.

It all depends on what you do with the difference in cash flow that you
get with an interest only loan. If you put it into investments that
earn higher than the interest rate on the mortgage, with income tax
effects factored in, then you come out ahead.


Unless, of course, the property doesn't increase in value over time.
Many don't when you factor in maintenance, I suspect.