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

[@IreneZhu]

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]

I'm in the "I'm better off renting and investing" camp!

[@mangoman9290]

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]

Great video. Popped up at just the right time

[@mangoman9290]

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]

Perfect video for my quarterly financial review. Thank you

[@homer6487]

Love your work. Thank you.

[@IreneZhu]

Thank you for your time to watch!

[@scottmcgilvery8511]

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]

What an incredible video ❤

[@politenessman3901]

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]

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]

Thanks for your insight 👍

[@hannesRSA]

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]

Awesome video, thanks

[@frostbolter7250]

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]

@@frostbolter7250 Thanks for watching! Video about Investment property vs stocks after mortgage is paid off is coming up soon.

[@annoying4sure]

Use the offset to generate a huge emergency fund. Once I get there... I'll let you know :D

[@lengerer]

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]

"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]

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]

Now do investing in bitcoin instead of s&p

[@InvisageStudios]

That’s speculative “investing”. Aka: gambling

[@jughead18sp]

Try not to cover the letter V in your thumbnail :D

[@IreneZhu]

Thanks for pointing out.

[@kamakkin]

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