Explain and compare these four different scenarios on how

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Explain and compare these four different scenarios on how mortgage, depreciation and tax expense impacts decisions on whether or not to purchase a single family income property as an investor.

Scenario 1: If the mortgage rate rises from 5% to 10% yet the appreciation of houses that consumers can 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 rates were able to be deducted from income, would you change your decision in Scenario 1?

Scenario 3: In the case of Scenario 2, if taxes on the property were fully deductable from income earned, would this change your decision from Scenario 1?

Scenario 4: How do depreciation costs on the house deducted from income affect the outcome on Scenario 1 during an inflationary or deflationary economy?

Reference no: EM13379129

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