If the mortgage rate rises from 5% to 10%, yet the appreciation
Question # 00144693
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Updated on: 12/02/2015 12:40 PM Due on: 01/01/2016
Scenario 1: If the mortgage rate rises from 5% to 10%, yet the appreciation of houses that consumers buy rises from 2% to 9%, would you be more likely or less likely to buy a house as an investor?
Scenario 2: If interest were able to be deducted from income, how would that influence your decision in Scenario 1?
Scenario 3:In the case of Scenario 2, if taxes on the property were fully deductible from income earned, how would this influence your decision from Scenario 1?
Scenario 4: How do depreciation costs on the house that are deducted from income influence the decision on Scenario 1 during an inflationary or deflationary economy?
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Solution: If the mortgage rate rises from 5% to 10%, yet the appreciation