But same thing still. Forget the property or warehouse. Great pay $500,000 (34%) for your $1.5M home. It really doesnt matter. The point is you have higher money in hand. You have $4.5 for VOO that you can DRIP and sell covered calls or wheel. So you get 10%. Thats 450,000 per year. You likely arent blowing all that per year. So you pay the mortgage, and reinvest the remainder (DRIP). If you bought your home outright you have $3.5M, generating $350,000. So for mortgage to come worse off, all the associated costs must be $100,001 or more. Because at that point you are better off paying cash. But really how likely is that? (I think again, because people just read the first chunk they find controversial, I would still pay off for PERSONAL peace of mind. Mathematically harder to justify paying off right away. I may not take the whole 30 years, but I definitely prefer the larger chunk to begin with especially as a new homeowner).

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Especially in the US when you have that stupid flat 30 year mortgage. What are we doing here? Do you really need an explanation? If you have $5M cash and want to retire, you could buy one home in SF for $1.5M outright. OK great. You very likely are doing fine with the interest from $3.5M. I concede. Or you could just buy two such homes for 2x500,000 downpayment, turn one to rental. You get cashflow. Or you just buy one for $500,000, so you still have $4,500,000, and just use the interest to live and pay off the cheap mortgage. Your market performance likely beats the mortgage rate. What if you have $50M, $500M, $5B, same principles. You can manage these cheap debts , buy multiple homes for investments or business workshops, and come out ahead. But I also concede, if i was in this situation I would be more inclined in paying cash knowing I would screw up the investment and DRIP. And that relief of having paid off your home is a big deal. Just economically, the richer you are the better off or the more well-placed your money will be by playing these cheap debts… when you are poor you arent thinking about these because thats your only option (mortgage). I hope you were kidding btw. This is super obvious.

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Audemar paralyzing drip, audemar wheelchair

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Get a drip

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