Quote:
Originally Posted by zx10guy
I whole heartedly disagree with you here. Alpine is actually smarter than you give him credit.
I totally agree with you. With mortgage rates being so low, I decided to keep my 30 years fixed rate mortgage (3.75%) going and not worry about paying it off. When you dunk money into something like real estate, it does turn into an asset but good luck trying to get your money out of it without having to spend money to do so. Also, turning a real estate asset into liquid cash isn't instantaneous. Unless you're in a really hot market, it's going to take weeks if not months to convert that house over to cash.
In contrast, I've decided to dunk the money I would have put into paying down my house into investments which last year resulted in a 24% return.
In addition, I have even less incentive to pay off my beach house property where I have a 30 years fixed at 3.25%.
But to get a little back on topic, I have no credit card debt; pay off all my credit cards in full each month. I own both of my motorcycles free and clear. My daily beater is paid off but unfortunately, I may not have it any more due to hitting a deer recently. The only debt I have is my wife's 2013 RDX and my 2013 135i. I put over half of the total price of the car as a down payment on the RDX and the wife is making the monthly payments at 1.49% for 5 years. I put almost half of the total price of my 135i as down payment with the same financing as the RDX at 1.49% for 5 years. I intend on paying off the BMW in a year or two. Even though the interest rate is low, having payments on a car just annoys me.
It was nice to have no payments other than my mortgages for a few years.
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Good luck. Most people on this forum don't subscribe to this type of logic.