Here's a little extra...
Why do you think the US government gives us a tax break for the interest we pay on our primary residence? Do you really think it's to encourage home ownership? Of course not! It's to encourage Americans to stay in a debt position to help offset their income taxes so they won't focus on how much taxes they are really vunerable to paying. This debt position keeps them at work, typically both spouses, and production for the country stays high as we pump out goods and services for the world.
Now in Australia you can't write off the interest from a mortgage on your primary residence but can on an investment property. Exactly opposite of the USA. What does it encourage Australians to do? It encourages them to pay off their primary home first and then encourages them to buy rental properties. Again, this is part of the major reason that Aussies pay their house off in 9-12 years.
Americans are worrying about a "fixed rate" and "refinancing." Aussies are worrying about paying less interest over the life of the loan. They get one loan. They pour all of their resources into it. And they pay it off. Wow, that almost sounds like what Americans used to do...
Ren
PS I am not moving to Australia, but I am a "financial conspiracy theorist."
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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