Angry ginger Posted August 25, 2019 Share Posted August 25, 2019 2 minutes ago, awful knawful said: Buying shit & paying interest for 5+ years is smarter? sometimes yes, depends on what you get for a return by keeping that money working. personally i don't like debt so i don't leverage things but sometimes that loses money Quote Link to comment Share on other sites More sharing options...
awful knawful Posted August 25, 2019 Share Posted August 25, 2019 3 minutes ago, Angry ginger said: sometimes yes, depends on what you get for a return by keeping that money working. personally i don't like debt so i don't leverage things but sometimes that loses money I'm conservative and avoid debt. Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested. Ok when things are good. What if you lose your job? Get sick & can't work? Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted August 25, 2019 Share Posted August 25, 2019 9 minutes ago, awful knawful said: I'm conservative and avoid debt. Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested. Ok when things are good. What if you lose your job? Get sick & can't work? pend the 450 to pay the mortgage payment which is the only thing better for you in your example. time value of money your better with the mortgage at least until the trump tax plan with high standard deduction Quote Link to comment Share on other sites More sharing options...
awful knawful Posted August 25, 2019 Share Posted August 25, 2019 2 minutes ago, Angry ginger said: pend the 450 to pay the mortgage payment which is the only thing better for you in your example. time value of money your better with the mortgage at least until the trump tax plan with high standard deduction I'm in Canada. Mortgages can't be claimed for income tax here either. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 25, 2019 Share Posted August 25, 2019 30 minutes ago, awful knawful said: I'm in Canada. Mortgages can't be claimed for income tax here either. They can against income producing properties or loans borrowed against investments. Not primary residences. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 25, 2019 Share Posted August 25, 2019 47 minutes ago, awful knawful said: I'm conservative and avoid debt. Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested. Ok when things are good. What if you lose your job? Get sick & can't work? If that 450 generated a steady 40k/yr I don't see how you would be behind. Quote Link to comment Share on other sites More sharing options...
awful knawful Posted August 25, 2019 Share Posted August 25, 2019 9 hours ago, ArcticCrusher said: If that 450 generated a steady 40k/yr I don't see how you would be behind. Ya for sure. Where are these magical 8% returns year after year? Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 25, 2019 Share Posted August 25, 2019 7 minutes ago, awful knawful said: Ya for sure. Where are these magical 8% returns year after year? Lots out there. For this scenario I recommend private investments like REITs. No relationship to the markets with private. Here is one that I own. 7.8% yield with a capital share adjustment approx 10% total return per year. They are out there but unfortunately most you have to find yourself. https://skylinewealth.ca/alternative-investments/skyline-retail-reit/ 1 Quote Link to comment Share on other sites More sharing options...
awful knawful Posted August 25, 2019 Share Posted August 25, 2019 35 minutes ago, ArcticCrusher said: Lots out there. For this scenario I recommend private investments like REITs. No relationship to the markets with private. Here is one that I own. 7.8% yield with a capital share adjustment approx 10% total return per year. They are out there but unfortunately most you have to find yourself. https://skylinewealth.ca/alternative-investments/skyline-retail-reit/ Just sent my info. Thanks Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 25, 2019 Share Posted August 25, 2019 (edited) 20 minutes ago, awful knawful said: Just sent my info. Thanks Two others Timber Creek Four Quadrant, Centurian. IMO, Skyline is tops. Edited August 25, 2019 by ArcticCrusher 1 Quote Link to comment Share on other sites More sharing options...
spin_dry Posted August 25, 2019 Author Share Posted August 25, 2019 (edited) 14 hours ago, awful knawful said: I'm conservative and avoid debt. Rather be debt free with $250 000 invested than a $200 000 mortgage and $450 000 invested. Ok when things are good. What if you lose your job? Get sick & can't work? That’s only one way to look at it. I have a 2.70% mortgage on a sub $100k mortgage. I could pay it off, but why? Investments are doing very well right now and I’d rather have that money free, invested, and making me cash. I can always liquid out some investments if I need to. Cash is so cheap right now. I’m flying down to Texas to look at an travel trailer on Tuesday. I can get a Suntrust Lifestream loan for under 5% and have the cash in my account within 4 hours. Now why would I want to liquidate an investment that doing well with the availability of cheap cash? Edited August 25, 2019 by spin_dry Quote Link to comment Share on other sites More sharing options...
awful knawful Posted August 25, 2019 Share Posted August 25, 2019 1 minute ago, spin_dry said: That’s only one way to look at it. I have a 2.70% mortgage on a sub $100k mortgage. I could pay it off, but why? Investments are doing very well right now and I’d rather have that money free, invested, and making me cash. I can always liquid out some investments if I need to. Cash is so cheap right now. I’m flying down to Texas to look at an travel trailer on Tuesday. I can get a Suntrust Lifestream loan for under 5% and have the cash in my account within 4 hours. Now why would I want to liquidate an investment that doing well with the availability of cheap cash? Doing well is?? Has to be more than 5%. Quote Link to comment Share on other sites More sharing options...
spin_dry Posted August 25, 2019 Author Share Posted August 25, 2019 6 minutes ago, awful knawful said: Doing well is?? Has to be more than 5%. Well yeah. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 25, 2019 Share Posted August 25, 2019 1 hour ago, awful knawful said: Doing well is?? Has to be more than 5%. Umm yes however you need to subtract the taxes owing on that. 5% needs a fixed income return of 10% or 7.5% capital. That will take an effort. At under 3% borrowing it really is a no brainer. Quote Link to comment Share on other sites More sharing options...
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