Search results

@katstamper That's true; but the value of the debt is decreasing with inflation and thus the value of the interest is also decreasing in real terms. You can look at it like this: imagine 5% inflation, 10% interest. Y1: Interest 10k, Y2: Interest 9.5k (y1 money) Y3: Interest $9025 (y1 money)...

@melikeyoubaby The biggest thing everyone is missing is inflation. The real value of your mortgage is decreasing every year, whether you pay principal or not. At the same time rents are increasing, and the real value of money in term deposits is decreasing.