Pay off the Mortgage Early or Invest? | Show me the Numbers!

  Рет қаралды 4,431

Irene Zhu

Irene Zhu

Күн бұрын

Пікірлер: 26
@IreneZhu
@IreneZhu 26 күн бұрын
Which camp are you in, paying off mortgage early or investing? 🔎Be a smart Value investor by using Seeking Alpha Premium to get 20% discount with 7-day trial: www.sahg6dtr.com/392M6MZ/R74QP/
@slightfimulator4888
@slightfimulator4888 17 күн бұрын
I'm in the "I'm better off renting and investing" camp!
@mangoman9290
@mangoman9290 17 күн бұрын
I am mid way between the 2. Pay off enough debt until I am comfortable and then invest. If circumstances later change and I would like to accept more debt to invest I can always unlock the equity.
@jonathon_bradford
@jonathon_bradford 12 күн бұрын
Great video. Popped up at just the right time
@mangoman9290
@mangoman9290 17 күн бұрын
Both scenarios are win/win and it all depends on the person and their attitude to debt. Debt recycling would also change the equation significantly and also if that money was invested into super as a low tax environment but it is difficult to compare all scenarios without losing viewers interest along the way.
@benglasby8014
@benglasby8014 14 күн бұрын
Perfect video for my quarterly financial review. Thank you
@homer6487
@homer6487 10 күн бұрын
Love your work. Thank you.
@IreneZhu
@IreneZhu 9 күн бұрын
Thank you for your time to watch!
@scottmcgilvery8511
@scottmcgilvery8511 17 күн бұрын
Nice work, very clear to me early on the tax man is also taking a slice of your money by investing compared to paying down your loan - in effect, that is where part of the $700k is disappearing to
@carnivoreisbetter
@carnivoreisbetter 13 күн бұрын
What an incredible video ❤
@politenessman3901
@politenessman3901 17 күн бұрын
Pay off the Mortgage, if real hard times hit, your investments will crash, but having a roof over your head can make all the difference - even if you have to cut off power, cable and internet.
@Woodland26
@Woodland26 17 күн бұрын
paid off mortgage in mid 40s by paying extra every month. Put money to superannuation especially more after mortgage paid off. Now super balance 2x TBC at 60 years old. Plus IP outside super.
@SaadonAksah
@SaadonAksah 16 күн бұрын
Thanks for your insight 👍
@hannesRSA
@hannesRSA 15 күн бұрын
Given that the same size home loan will be in progress, the equivalent point is simply where Investment Returns after Tax = Loan interest rate. About 8%+ gross return vs 6% interest. That's basically the gamble. Even cash flow could be debated since investments are liquid.
@jaycenorth3962
@jaycenorth3962 17 күн бұрын
Awesome video, thanks
@frostbolter7250
@frostbolter7250 17 күн бұрын
Another great video! What are your thoughts on buying an investment property vs investing in stocks assuming no mortgage? I'm considering a 10-20 year view.
@IreneZhu
@IreneZhu 17 күн бұрын
@@frostbolter7250 Thanks for watching! Video about Investment property vs stocks after mortgage is paid off is coming up soon.
@annoying4sure
@annoying4sure 17 күн бұрын
Use the offset to generate a huge emergency fund. Once I get there... I'll let you know :D
@lengerer
@lengerer 17 күн бұрын
Interesting video. Not sure on your age but your number made me chuckle. In Melbourne 2008 our 30sqm 4 bed, 650 sqm land home cost 400k brand new build. A 650k home in 1994 would be a mansion in the CBD haha My parents home in 94 cost 130k My dad was a mechanic earning 25k pa No way a average person would have 6k peronth in 1994
@stephenc5209
@stephenc5209 16 күн бұрын
"Total cost of loan" is a red herring, it should not be included in the table. It is irrelevant as in both scenarios the couple live in the same house and commit the same amount of money per month. As those variables are the same in both scenarios, the calculation should just be their net worth of their investment and their house.
@IreneZhu
@IreneZhu 16 күн бұрын
Thanks for sharing your thoughts! I understand where you're coming from, but I think there might be a bit of confusion here. In the video, I aimed to show the net equity gained by accounting for the cost of borrowing (both capital and interest). While the monthly payments are consistent in both scenarios, the cost of the loan is a significant factor in determining how much equity is truly gained over time. I wanted to highlight that borrowing isn’t free, and it impacts the overall financial outcome. Hope that helps clarify my approach.
@dooget
@dooget 16 күн бұрын
Now do investing in bitcoin instead of s&p
@InvisageStudios
@InvisageStudios 15 күн бұрын
That’s speculative “investing”. Aka: gambling
@jughead18sp
@jughead18sp 17 күн бұрын
Try not to cover the letter V in your thumbnail :D
@IreneZhu
@IreneZhu 16 күн бұрын
Thanks for pointing out.
@kamakkin
@kamakkin 12 күн бұрын
learn about bitcoin
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