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Cost of debt in Real Estate

Writer: Antonio PinheiroAntonio Pinheiro

The most common form of debt in the real estate context is the mortgage. It's a loan that is secured by the property.


When the debt is issued, there's an agreement stating the cost of debt (i.e. the interest rate charged) and the terms of the debt.


The cost of debt is often tax deductible, it means interest can be subtracted from taxable income.


Faro, Algarve - Portugal


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