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Beneficial Deductions

In some countries deductions can make a major difference to wealth creation and how you live. In the some countries you can claim the interest on the mortgage on your own home against your income, but not against investment properties. This favours home ownership in that country.

In other countries the opposite applies - you can claim interest against the mortgage on your investment properties (in fact on most investments) but not on your own home. So this favours investment especially when the investors living in rental properties (instead of their own homes). Rent money goes further and as a renter you do not need to maintain the property. If your investment property needs maintenance then this becomes a deductable expense. Ideally when you cannot claim the interest on your own home it’s better to rent until you have enough net worth to buy your own home outright rather than having non-claimable interest to pay.