Quote:
Originally Posted by arock10
Paying off your house right now is the worst move you can do. Interest rates are at all time lows, pulling out all that paid off equity and investing it is pretty much what people need to do these days.
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Can`t agree more ....
Building ( multiplex ) next door to me was for sale ( 525K ) . I remortgaged 2 other properties to pull out 100K at 2.94 % ( tax deductible ).
The 100K became the cash down on 475K I paid for the new property ( 20% so no insurance premium on mortgage ) .
Income ( rents ) minus expenses ( interest, taxes, maintenance ) will net me about 13K a year . Return on the 100K : 13 % . Cost : 2.94% : profit before taxes : 10.06 %
Notice I do not factor in any increase of value of the property, which here as been about 3% a year ( 14K )
We all have a choice :
Either we work for money .... or the money works for us
