It just occurred to me that with an interest-only kind of loan, you basically get to deduct your housing cost.
That is, if you live in a non-bubbly area where mortgage is roughly equivalent to rent and you get an interest only loan, you basically get to write off your rent. If housing prices drop, you're kind of stuck with the property; if prices go up, you can sell and make a profit.
Talk about a subsidy....and, from what I hear, you don't even need a down payment these days.
Joanna