Read Estate: Never pay off land?

[jamazon]

Hi,

I am going to buy a house in the next year or so but do not know what my down payment % should be. Isn't it common sense to pay as much as you can afford so you can pay off the house as soon as possible? I am currently thinking 40-50%. However, after running across this thread, a user called Loci recommends "never pay off land" and went to explain about refinancing a 100k property into 40k property tax free, which I don't understand. Can someone simplify this concept? In addition, is "never pay off land" the same thing as "never pay off house?" In my country, we consider land/house the same thing and there's no property tax and "refinancing for tax free," which is the reason why I cannot grasp the concept.

Thank you for reading [img]/images/graemlins/laugh.gif[/img]