The deeper problem is that she's a teacher. All that wisdom being passed on (Sarcasm font)
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COVID and the housing market
- Thread starter mimico_polak
- Start date
I guess there is always the chance she divorced and had to buy out half a house, or some other challenge. Bt that wouldn't work with the media spin that its desperate times for homeowners.
I still hold firm she did something stupid.
I have some aquaintances , my mortgage is 3% and I can make 5% in the markets , why would I pay down my mortgage? Well because now your mortage is 5% and the market is paying -15%........ there is good debt and bad debt, but its still debt.
I still hold firm she did something stupid.
I have some aquaintances , my mortgage is 3% and I can make 5% in the markets , why would I pay down my mortgage? Well because now your mortage is 5% and the market is paying -15%........ there is good debt and bad debt, but its still debt.
You can't write off the 3% and the 5% is taxable.
5% may be taxable. It depends how you structured it.
Depends on how you structure it.
If I ran into 500k tomorrow...my house would be paid off. The hell with the markets and chasing magic returns.
My sentiments as well.
Every decision we make is, in a way, an investment. That includes our careers, spouses and abodes. Day trading those is done at great risk. Not everyone wants to live on the edge.
Some corporations won't let you use your prime residence as a listed asset if you apply for a franchise.
Dreaming here, but if anyone has an extra ten million they don't want I'd move here. FWIW I suspect an error in that the listing says A/C and Forced air gas but the pictures show radiators. The place has been around for a long time.
Six $M to buy it and the rest to keep it up for a few years.
AllistonGT
Well-known member
It was my obsession. Bought our house in 1992. Our mortgage was $165000 at 8 1/4%. A lot for the time. Paid it off in 11 years. Never regretted it. Been debt free since.
Benefits of being debt free isn't just monetary IMHO. It's a great feeling knowing you have a much better chance of riding out any unforeseen issues in life that can come up.
It also puts the power on your side if your employer knows you have zero debts.
You are however more than likely compromising financial flexibility for (hopefully) the short term.
My opinion is the same as @AllistonGT and when I mention it on some subs it’s always the same
‘But the gains you’re missing out on!’
Sure am…but I prefer peace of mind. With a mortgage of 463k currently I am VERY VERY VERY far from paying it off…about 27 years at last check.
Adding about $100/biweekly currently but few more raises and that’ll stop as money is getting tighter with each raise.
If I had no mortgage…Porsche here I come!
I would argue that less debt gives you greater financial flexibility. A paid off house is a good backstop for a loan or mortgage
AllistonGT
Well-known member
Short term possibly. We kept up the payments. Just in the form of investing.
100% it does…but to pay off the house first you need to give up a LOT of the wants to get there.
I was paying an extra 2k/month when I was FIFO because I didn’t even feel it. Now…not so much.
Fly in, fly out. 50-100% more money. 50-100% more failed relationships if it goes on too long.
Fly In Fly Out site job. Spent about 28 months out in BC on a rotation.
2x the salary helped out a lot. Lost out on 2/3 my family’s life, so I quit and came home.
AllistonGT
Well-known member
THIS IS KEY. I was 34 years old when I bought my first new car. No travel first 10 years of marriage. No dining out etc. It's not for everyone.
We make up for it now lol.
Mad Mike
Well-known member
When I was a banker I saw that sell day long. People who lived in their house for 20+ years with bigger mortgages than their initial loan.
I have no sympathy for those who used their home as an ATM, or renters who have had incredibly controlled rents for 20 years but done nothing to save under their advantaged situation.
There are no free rides.
Those gains could be put back into the mortgage.
I’m not saying it’s the only way, I’m simply suggesting there are reasonable alternatives. I rent, I save in a style that mimics the return of equity on a mortgage payment. I also have a slush fund so I can jump on things without waffling and asking permission.
Of course they can…but they need to be positive…and there’s lots of people who put money in the market recently cause ‘it’ll only go up!’Those gains could be put back into the mortgage.
I’m not saying it’s the only way, I’m simply suggesting there are reasonable alternatives. I rent, I save in a style that mimics the return of equity on a mortgage payment. I also have a slush fund so I can jump on things without waffling and asking permission.
And with recent market conditions…
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