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A Home is a BadAss…et

Understand the difference between an asset and a liability, and prioritize buying assets that will generate cash flow to pay for a house instead of incurring a home-equity loan. Why The Home Mortgage Interest Tax Deduction is a lie for most people.

Bram Adams
Bram Adams
1 min read
A Home is a BadAss…et

Table of Contents

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. (Location 836)
  1. Housing
  2. Cars
  3. Expensive Colleges[1]
All too often, a house only serves as a vehicle for incurring a home-equity loan to pay for mounting expenses. (Location 1023)
I am not saying don’t buy a house. What I am saying is that you should understand the difference between an asset and a liability. When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house. (Location 1036)
The Home Mortgage Interest Tax Deduction is a Lie
Less than 1/3 of homeowner’s benefit from the deduction of mortgage interest.
More interesting than how many people benefit is who benefits.  A nice middle class family in the 15% tax bracket might save an Andrew Jackson or a Benjamin Franklin every month for the first few years of home ownership.  But a Senator might save $1,500/month at the 39.6% marginal rate on his new DC Mansion
The Middle Class often buys houses based on size of payment, per the common advice of, “Buy the biggest house you can afford.”  Since every How Much House Can You Afford calculator includes estimates for a tax benefit, the result is just higher housing prices.
For the rich, the interest tax deduction is a great subsidy.  For everyone else The Home Mortgage Interest Tax Deduction is a lie.  People in SF and NYC get their mortgages subsidized by the rest of the country (View Highlight)
If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. (Location 882)


  1. Profit earning vehicles (companies, stocks)
  2. Bonds
  3. Knowledge (create new wealth vehicles)

  1. allows you to cheat your class and shortcut to a higher one


Bram Adams

writer, programmer


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