There is this idea that owning your own house is ALWAYS a good idea, this is not ALWAYS…

1N6JkYce7svm8kMPzrZpwbKW9jsKoaXBL (140) · February 11, 2021

There is this idea that owning your own house is ALWAYS a good idea, this is not ALWAYS true.

If someone paid in cash a 2 million MXN house in 2007 & it's now worth 4 million MXN in 2021, did that someone win?

The investment in $USD has 0% gains.

Think.

Replies

1N6JkYce7svm8kMPzrZpwbKW9jsKoaXBL (140) · February 11, 2021

Owning your house outright has some great benefits, like financial peace and focus.

If you pay it off in one go with cash you have, you have to make sure you invest the equal amount (or more) into stocks and other financial instruments indefinitely.

1N6JkYce7svm8kMPzrZpwbKW9jsKoaXBL (140) · February 11, 2021

The equal amount refers to a loan you would take in its place. For instance a $2000 USD monthly payment will now go into investments, not more spending!

Those $2000 USD a month will give a 100%+ gain with a 10% average return over the next 14 years.

1E5wYaMr6BYL3qHSZQ3sPqaQHvaCVoYcfh (678) · February 11, 2021

real estate historically has been the best hoodl.

1N6JkYce7svm8kMPzrZpwbKW9jsKoaXBL (140) · February 11, 2021

What timespan? If you make one that is between 2008 & 2021, great, but what about longer ones, like the last 40 years average? Last 60 years average?

I do agree that getting a house paid off is wonderful, but one has to consider if leveraged or cashed.

1E5wYaMr6BYL3qHSZQ3sPqaQHvaCVoYcfh (678) · February 11, 2021

all of human civilization

1N6JkYce7svm8kMPzrZpwbKW9jsKoaXBL (140) · February 11, 2021

Yes, there we agree 🙂. Before, while and after FIAT.

Let's see the new era unfold.