Uh yes, earning an 8% minimum guaranteed right now.

CPDAggie10 said:

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lead said:

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Got a guaranteed investment making more than 4%?

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Yes. Real estate as long as you perform the proper due diligence and underwriting. Also, conservative investments in the stock market over long periods of time has proven to provid solid returns of 5%+ very easily.

I've convinced myself that the Dave Ramsey approach of paying off low interest mortgages early is for the financially illiterate. There are tons of other opportunities out there to accelerate the building of wealth.

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Exactly.

It's like the crazy logic as winning a prize and choosing to take the payments across 30 years versus taking a percentage less and getting it all now and investing it yourself letting it perform better and have full control over it.

Why would you be willing to take 4% savings now (for example), when you could do MUCH better for yourself and WTF is 4%? Low as heck.

Not all debt is bad debt, and some people don't get that. It's like real estate guys that take out leans against their existing investments so they can invest more and get more properties and more earners.... you're never totally debt free (mostly anyways) even when you're rich.... you're money is making money and you're way to with 'the cost' (debt)

Op asked....I answered. Gigem

You were saying?

two smug responses to the same post. Impressive.

You're own mind is reading them as smug.

I never critiqued anyone else's opinion.

Gigem

honestly I have no idea how else to read those

2009 says hi. Real estate is far from guaranteed.

I would bet a ton of people renting houses are in industries getting hit hard right now. How many people are unemployed at the moment?

If you pay off your mortgage you can invest more each month. Nobody who didn't have debt has ever declared bankruptcy.

Im not saying it's the only answer, but paying off your house isn't a bad idea.

gvine07 said:

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2009 says hi. Real estate is far from guaranteed.

I would bet a ton of people renting houses are in industries getting hit hard right now. How many people are unemployed at the moment?

If you pay off your mortgage you can invest more each month. Nobody who didn't have debt has ever declared bankruptcy.

Im not saying it's the only answer, but paying off your house isn't a bad idea.

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I never said real estate was guaranteed - but your mortgage rate is - and if it's at 3% or even 4%, you're telling me you can't put that money in the market and pretty much guarantee to do better across 15-30 years?

I'd personally put a chunk in the market, not all.

But my argument is don't tell people it's stupid. It works for some people. What if there's a huge recession, the market where your money is went down 50% (like 2009), home values go down 30% in your city (they went down much more in some places), you lose your job, and you got a new job in a different city. You can move, but it's going to cost you.

Meanwhile, if your house was paid off you can be patient to sell because you don't have a mortgage. Rent it out stress free if the right buyer doesn't come quick. Not having a mortgage provides a ton of flexibility and peace of mind. That's worth more to some people than others.

gvine07 said:

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I'd personally put a chunk in the market, not all.

But my argument is don't tell people it's stupid......... ETC ETC

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Why are you saying that I said it was stupid? Let's quote my ORIGINAL post here :

Quote:

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I think that's very poor advice if you're house is sitting on 2%-4% interest rate making it far more attractive to not pay it off and instead invest it and make even MORE.

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Seems to me you're parroting back to me a whole lot of what I said, but adding an implication that I said it was stupid.

I clearly stated that not all debt is bad debt, and gave extremely lose interest rates on houses as one reason.

And EVEN IF the value of your house tanks, you still borrowed a fixed amount at a fixed percentage, and if you can' use that fixed amount to earn a better percentage, then it's much, much better than just paying off your house.

This was a great real estate thread! These posters still here?