If you are looking to buy or sell Real Estate on the Gulf Coast of Florida or Alabama email me at jack.motley@adoorrealestate.com. I am a Real Estate Agent. Check this video out!- Florida Drops bombshell on Condo Owners- ruclips.net/video/_IBCO7-ak90/видео.html
Has to be your home right? Not a house. In the US we get 30 year fix mortgages, nowhere else...Thing is, as inflation rises so does your equity in the property, and at the same time it the inflation eats away at your mortgage and destroys your debt, as these are fixed payments for 30 years. The rents you receive from this property also increase from inflation and is tax free....a situation like that, paying off the mortgage would be detrimental...
Absolutely pay it off asap. It saves you tens of thousands in interest, free up money to invest and if you lose your job or can’t work the bank can’t take it for missing payments.
It does NOT free up money in case you lose your job. The money you pay on your mortgage is money you cannot invest. The odds are that your mortgage interest rate is lower than your potential rate of return. Historically, the market returns over 10%. Mortgages aren’t over that If you lose your job, you aren’t getting a loan to give you extra cash. Home loans & home equity loans are loans against YOUR INCOME, not your home. If you don’t have income, you aren’t getting a loan. Banks don’t want to sell houses to get their money back, they want you to have a job to pay the money back
@@escapedfromnewyorkThe math is not that simple. You have to consider many factors such as your income, your employment stability, how close you are to retirement, how much money you have for retirement, what the outstanding debt is and other things. You’re also not considering the relief it provides when you know you own it. For me and mine…especially with current mortgage interest rates, the house is a high priority. Also, you are referencing historic returns for the market but that doesn’t account for streaks of years of bad returns. If I’m close to retirement and have good retirement savings, the mortgage is a drag on my freedom and ability to retire sooner. I’m paying it off under almost every scenario.
When I was 17 years old, my parents and brother and I were living in a 2800 square foot house in a very nice neighborhood in Houston. My Dad sold Real Estate. This was in 1981 and the Real estate market crashed. We packed up some, sold what we could and spent the next few years bouncing around crammed into 2 bedroom apartments while my we struggled to pay the rent and other bills. In 1984 my Dad had a great year and bought a house for cash. In 1990 the Real estate market crashed again. This time, he got a job selling roofs after the hail storms and nothing else changed. He still came home every night to that paid off house. I was 21 years old at that time and had just graduated college. This was the most important financial lesson I ever had. I am now 61 years old and I have not had a mortgage payment in over 25 years. The peace of mind this gives me is priceless.
As a self made millionaire with NO DEBT, I couldn’t agree more with everything you said here. Most people who say don’t pay it off are young fools, they haven’t seen a bear market in their entire lives. My 2 homes have been payed off for 10+ yrs. Life is good with NO DEBT.
Heck yeah! Pay your house off ASAP! The pressure of not having a mortgage is a relief! No stress ! Stress can destroy your health! When I buy a Truck it's used for work it makes money! A Corvette makes me no money! Wake up America
Thanks. I'm a 100% believer. Bad times and financial difficulty can happen to anyone. Did to me and it's a real pain that can't be forgotten. Paid up home is a blessing.
I follow Dave Ramsey. I paid my house off in October, 2024. It was such a relief. I haven’t had CC debt for a while but nothing beats having the house paid off! I have followed Dave for years, paid off CC debt, banked the 6months emergency fund, and now the house is paid off. Out of the three nothing is better mentally than paying off the house. I’m now in the investment stage. 🎉
Couldn’t agree more. My house has been payed off for yrs. I have NO debt. EVERYTHING I own, I own. Not the banks. I use a cc for convenience and pay the balance off monthly, use the points to buy necessities. I sleep really well. People who say don’t pay it off are fools. They haven’t seen bad times come, and when they do, you have peace of mind with a paid off house.
I made a mistake of moving to bigger condo 2020,had my old place paid off,insurance is killing my mortgage payment, going to bite the bullet and pay it off this summer, and drop insurance ,westpalm area. ✌️🏌
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
I expect home prices to decline in the future, but for now, I advise diversifying investments beyond real estate. With high mortgage rates, signs of a recession, and stricter lending policies, shifting capital into financial markets or assets like gold offers a more secure strategy. The housing market may require a 40-50% correction before reaching stability. In times of economic uncertainty, seeking guidance from an experienced financial professional is crucial.
I truly appreciate the suggestion-it was exactly what I needed! I looked her up on Google and checked out her website, and her investment background is impressive. I’ve reached out via email and am looking forward to her response.
Best advice to pay off your mortgage as soon as you can. It's old school logic that currently some "so called experts" keep trying to refute. But it's just common sense. That mortgage payment can now go to savings, investments, college funds, and scores of other areas rather than making a bank richer.
Meanwhile no one seems to care how much they are paying in income taxes. There can be a lot of taxes saved by carrying debt and funding retirement accounts, and the accounts have annual limits. You can't end up with $5k/mo in free cash flow and then choose to divert it to retirement accounts. In fact you'll have nowhere to put it without it being taxed into the dirt beforehand. Instead you spread the funding of these accounts across many years for full tax advantage. Since 401k participation in this country is super low, I expect tons and tons of "debt free winners" have actually been hemorrhaging income taxes the entire time and don't even know it. I save about $35k a year in taxes by carrying debt instead of paying it off.
I paid off my house and lake property 10 years ago. Best thing I ever did. 4 heart attacks and 2 strokes later I am unable to work. Plus I only paid 87500 for the house and it values at 200000 now. Not to shabby. I have 25000 into the lake property and its worth 150000 now.
I have a small house paid off in Dayton Ohio. Best feeling ever. I''ve had jobs come to an end and I've had to sale my previous home in order to downsize. Buying a smaller home cash has changed my view of life, it has giving me a different type of peace and less panic with the family when emergencies come up.
Paid off my 30yr mortgage in nine years over 16 years ago and only debt I ever had. Also paid cash for my beach home after housing crash in 2008. The same people that said it was stupid and dumb talking about "good debt" are still in the matrix with debt and working. I'm retired,debt free,and FIRE at 49 in 2020 currently spending the winter in Bali. I just started investing/saving early at 15 and all of it has been working for me ever since.
Actually, paying off a house in FL is a money saver in that you can self insure your home and not have to pay outrageously high homeowners insurance. Edit: You covered this in the video.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
I owe 245,000 on a mix if single and multi family homes (19 doors) and i absolutely cannot wait till my stuff is paid for ..i have right at 5 years left. Ive thought about oulling equity out of one house and just paying everything off and dropping the insurance on the houses that are paid for but i just hate the thought of starting the interest wheel back over so ill wait it out.
I didn't pay my homeowners policy . The premium was double what it was a few years ago. The deductible amt was crazy for huricane. I had very little damage from the last huricane and I'm getting close to 5% interest on the $ i could have wasted paying for insurance.
I WIILL ever be paid as long as the property taxes keeps going up and up to the point it becomes like a mortgage payment and stage will take you house !! Abolish property taxes
I have always bought homes within my means. I only bought ones that needed renovations and could be paid off in 5 years or less after my first mortgage. I get the minimum of what I need. A house isn't for "flexing." Disposible income for investing, traveling, and FU money is a flex.
I learned how to build my own home for this very reason. I am currently building my second new home with cash. When we are done, we will have 400,000 in equity. I can use that equity to build another home on my other lot to sell to the public. We live off one income and use the other income to invest.
Agree 💯 with you! The home we live in is fully paid for. We owe $26,000 on one of our rentals, of which we could pay off if we wanted. About 60% of the cash flow goes toward additional principal payments, and 40% is set aside for repairs or unexpected expenses. The A/C compressor went out and cost $3,250 to replace, but with that money set aside, we didn't have to sweat it. The other rental is fully paid for from part of the sale of our principal residence of 32 years. We currently live on a 5-acre mobile home that we fully paid for from our 401-k. I don't say this to brag since our net worth is around $700,000. In today's dollars, it's nothing to write home about. Our goal is to be debt free, stress free, and have peace of mind that we are not going to loose the roof over our heads due to debt. This doesn't come overnight, but with some discipline and a little bit of sacrifice, there is some light at the of the tunnel. The tax advantages you get from owning your first rental can propel you there much quicker, but that is the subject of a different topic.
Bought a house in the '60s at 6% interest and by the seventies the note was like a utility payment because of inflation. The only value in paying off your note would be if there was no inflation. If you bought your house with 20% down you will be able to sell it even at a loss if things go south because of inflation. There is a value in having security but that should be in your ability to earn. Everyone has a perspective, thanks for sharing yours and allowing me to share mine.
"common" is the problem in common sense. There can be much more to consider than "money in, money out". People that make a lot of money end up paying a lot in taxes. I pay almost 34% in taxes, so focusing on routing money to tax deferral rather than paying down debt makes me 34% on my free cash flow every year, instantly. Self employed people can take even more advantage of this. This is not rocket science either. "Freeing up more cash flow" is just maintaining the same cash flow that is already taxed into the ground. You never escape it. There are better ways of managing this for the people that are willing to see it.
I get the logic of people saying you could get more money by investing... But wouldnt i make so much more money if i pay off my house and then use those funds to invest freely? I like to play things extremely safe when it comes to life. Id rather be comfortable and happy than rich.
No. there are several ways that works and several ways it doesn't. To cut it short: paying off the house and then using the extra money to invest means you are paying income tax the entire time. Carrying a mortgage and dumping extra money into a 401k wins every single time because of income taxes. Now if you can fully fund a 401k as a regular working joe, and still have money leftover, then yes pay off the house. however statistics show that most people never come close to filling their 401k. So these people are spending a lifetime being gouged by teh tax man and still call it a win.
Fellow Real Estate professional here and... AMEN Brother! Your primary family house is your HOME not an asset to be used as collateral... It is the ONLY thing you need to protect (other than your family obviously) with all your being. Sold one of our investment property (10 year flip and hold) and paid off our primary home with much of the profit. Security is worth the world. If things go to crap, you are not homeless.
In 2005 till 2007 my first house was my 🏧 I got out just in time within 7 weeks. Needless to say I bought the next house at the bottom and haven't borrowed one dime since
I had a paid off mortgage before the housing crash. Credit froze. I was able to buy my primary home for 43% of its original value in 2007. It was so cheap, i bought a mini farm in 2008.
PAY IT OFF! And fast! I own mine free and clear now and it is an amazing feeling. In 08 we almost lost everything including our business and home. After that we decided to get out of debt asap in case something like that ever happened again. Now I’m working on getting the patent to my land so I don’t have to worry about Real Estate taxes. Get free of banks!
What if you have a pension that will always cover my mortgage and life insurance and survivor benefit that my spouse and heirs will have enough to cover the mortgage and then some?
You're fine. The debt avoidance / no mortgage obsession is not the only way to get things done. My guess is there are thousands and thousands of people completely fixated on paying off their house while at the same time they pay out the wazoo every year in income taxes. could they arbitrage less income tax and carry some debt to do far more with their money? Yep. Is this some kind of massive risk? Nope. Are they going to listen? NOpe.
Imagine this: you’re sipping coffee on a balcony overlooking a city skyline or lounging on a pristine beach, all while your investments are working their magic. With copytrading, you can finally pursue your passions, travel the world, and create unforgettable memories with your loved ones. It’s all thanks to the power of copytrading from Sophia E. Haney and the life you’ve always dreamed of!
Guess what? I’m celebrating a $500k stock portfolio today! It all started with a modest $70k, and I’ve been making smart investments that have paid off tremendously. Now, I have the time to enjoy my family and plan for the future. Copy trading has been a game-changer for me.
Can't share much here, I take guidance from ‘Sophia E Haney’ a renowned figure in her industry with over two decades of work experience. I'd suggest you research her further on the web.
Down to 30k morgage this year, paid of in 2 more years.. (after many years). woke up to the logic about having a paid off house a year ago ... less debt = always better..🏠
Paid off several years ago. Totally worth it. Great piece of mind and I own it! I borrowed 100000 euros. Over 15 years repayment Id repay 120000 euros, over 25 years around 140000. With early payment I repaid around 104000 by keeping interest super low.
You still come ahead if you pay off the mortgage. Instead of the 2% delta( 5^% bank account - 3 % mortgage rate example) you would get 3.15% (3% freed up cash flow x 1,05). Just doing simple math- no compounding,. 3.15% > 2%. - pay off house.
How do you feel about umbrella policies given having a house with homestead but also have rental properties?. Big picture thoughts given todays sue fest/fraud environment
What advice are you offering homeowners that live through a financial crisis and their home values drop from 800k to 300k. If you’ve paid that mortgage off at say 600k you’ve lost all of that equity for at least ten years.
Interes deduction is only equal to your tax rate %! I. E. 8k interest at 32%tax rate= interest $$$ lost. Forever. Calculate your ACTUAL INTEREST PAID ( even after deduction) is real money you’ve lost.
Inflation is going up, rates don’t reflect real debt, these will come home to roost. And many other economic issues in play. My father always told me “don’t spend money that isn’t yours!”. House is payed off, low overhead, and hold extremely low debt. The return is piece of mind.
It’s a nice fealing to pay off your house, but I don’t believe that you were totally honest. Amortization is the problem $200,000 loan with a 30 year mortgage. The first year you will pay $8000 in interest and $3500 on principal. On the 30th year you’ll pay $244 in interest and $11,200 on principal. So that means in the last year you will be paying .1% (point one percent) interest. I believe the banks want you to pay off your mortgage at the end of the loan but they’re betting on the fact that most people refinance in the first five years .1% (point one percent) interest is a lot lower than 4% simple interest that you can get on a savings account.
the amortization is not a choice by teh bank, its the only way the math works. if you change any part of the monthly interest amount it will end up altering the overall rate or the term. the interest on loans is a widely accepted standard because of the math.
I never "paid off my house". I just bought cash my cute amazing apartment in one of the best neighborhoods in Düsseldorf, Germany. So many bla bla about this topic. Never was a debt of any kind in my life. And bought a rental before bought my apartment. And relocated from a different country. Any my next step is to buy another rental and then will be financially free work foe fun like I always wanted. 2 years away from that at most.
What you said about your father THAT is the reason! God forbid something happen to you like you croak early or become super sick and the bank throws your house wife and your 4 kids out on the street after you’ve been paying on your mortgage for 25 years… put your family first and do all that tricky dicky investing shit after you have some real sense of security. My soul wouldn’t be to rest at peace. I didn’t do my job as a protector a provider a husband or a father. Your dad was thinking like he had people counting on them.
Yeah I paid off my house now I have to pull money out because I just focusing to pay off not fix or updating anything in my house! Now new A/C water heater kitchen bathroom floor etc it’s around $140k … including my work so it’s more if I hire someone who do all the work!
I paid my house off and I'm glad I did. 1. I don't have a crystal ball. I don't know the future and investments can be lost. You never know what's going to hit you in the future. 2. Peace of mind. It felt like a ton of bricks off my shoulders. 3. When I decided to move I sold my house and paid cash for a new one. If you still owe on your house it makes it more difficult to move. 4. The repeal of glass-steagall in 1999 caused a housing crisis in 2008. Glass-steagall was in place to prevent a crash like 1929. The housing market is the backbone of this nation, that is why the globalist want your equity.
If you lose your jobs, or one of the household income, or have medical issues and unable to work, you will lose your roof. Peace of mind knowing your house is paid off alone worth it many times over.
Paid my house in 11 1/2 years. Could I have made more money in the market by investing that money instead? Sure. Do I miss it? No, not worth the risk. No risk is my reward.
@@RickAndell you kidding me just the price gouging is causing people to not afford to pay. Years and years of paying and when they need their insurance to pay , they finds a millions reasons not to pay , you kidding.
@@gracetou8963But the point of this whole video is the financial and “peace of mind” benefits of paying off your home. If your home is paid off, you are not required to have insurance. The insurance company cannot take your home from you. YOU are in control, not the insurance company. The only entity who can take your home from you is the government if you don’t pay your property taxes.
@@RickAndell I understand , I know someone who recently lost their home. It was paid off but because they could not afford the 10 thousand dollar a year flood insurance they lost it.
Don’t listen to these people bs not paying off your house. Majority of them work for the real estate. Paying have so much benefit to the owner. It’s common sense.
You will sleep better at night. These gurus will tell you that there is no return on your equity. Yes but what they don't ell you is that paying off your house frees up money that can be put into assets generating a return. You don't have that monthly payme ts. Also, losing your job or primary income source, you still have that monthly mortgage payment if you are.carrying a mortgage.
I live in Clearwater, Florida. I have an interest rate of 2.78% I could pay the house off. You'll never escape property taxes. I'm married and I owe my wife a roof over her head, so if I paid the house off, I'd still want homeowners insurance. So most of the payment for my house is taxes and insurance. I could pay this house off today. The principal on this house is chump change. Make more money in investment's. I'd rather keep the money in the bank. Now I'm retired. I've got some money. So tell me why I should pay the house off?
@@AmericanConstellation 57 with house paid and lot's of diversification. My biggest concern is our litigious society. One wrong move or accident and you get sued for a gazillion dollars. Primary home is protected no matter what kind of judgement comes our way. If your broke, sell the house when the dust settles. It's 100% sure protected money. Of course, this is worst case but it's possible--never say never. We moved to Texas which also protects your homestead. It's great peace of mind but everyone's situation is different.
You eschew risk yet talk about stripping down your home insurance? Let's allow a massive asset that is paid for potentially get destroyed with no recourse? That's risk, my friend. You're just preferring one risk over another. I'm over 50. I maintain a mortgage because instead of paying the house off, I can route a lot of income into multiple deferred investment accounts. not only am I getting investment returns, but I am saving massive amounts of income taxes. I "make" $35k a year in tax savings before investment returns. This absolutely dwarfs interest costs and has made me a multi millionaire in a very short period of time. Honestly, anyone who considers a primary home mortgage as "excessive leverage" needs to stay out of advanced finance commentary.
I’m in the court of always put down the minimum to avoid PMI. Always get a 30 year fixed mortgage. Refinance principle when interest drops below 2.5% your rate. My thought is exactly what investors say,” never put all your eggs in one basket.” Case to point you never know what they will do to you for example the condos in Florida. Those paid off condos are damn near 100% loss. Fires in LA and Hawaii. Floods in NC and FL. Tornados in the Midwest. Sure they could come after you if you stop paying the mortgage but it’s rare and the litigation it costs the banks is not feasible for them. And you truly are tying up a lot of capital which is not working for you.
And even if mortgage paid off and self insure never really own it since have to pay property taxes each year (unless rated 100% disabled by the VA). If do not pay those property taxes the taxing authorities can place a lien on your property the same as a bank even if your homestead. Ok self insure? Cons and pros. I have a friend in Palm Bay with mortgage 100% paid off and he self insures the windstorm. When I called him during Milton he a little scared of all the large tornados that spun off thruout the state. However I have heard some insurers not paying out from L.A. fires so what good then is insurance?
@@davidfenton109 Exactly, we never really own a home in the U.S. The tax man can just raise to what ever he wants rendering your house damn near worthless. Besides, one of the worst SCOTUS rulings, your property can be taken for economic reasons by the state and given to private corporations through eminent domain. Kelo v. City of New London in 2005. Nope, I'll never pay a home off. I wonder how many people got suckered into paying off a home due to the high cost of insurance and cancelled them before getting wiped out in a fire, flood or some other catastrophe? Cash is fungible your home is not.
Oh yeah, pay it off. Why didn't I think of that? I mean, it's not like inflation has prevented us from making extra payments. This reads like the talk of a privileged person who is liaded with money and has extra income.
If you are looking to buy or sell Real Estate on the Gulf Coast of Florida or Alabama email me at jack.motley@adoorrealestate.com. I am a Real Estate Agent.
Check this video out!- Florida Drops bombshell on Condo Owners- ruclips.net/video/_IBCO7-ak90/видео.html
A paid for house changes your entire life for the better.
Has to be your home right? Not a house. In the US we get 30 year fix mortgages, nowhere else...Thing is, as inflation rises so does your equity in the property, and at the same time it the inflation eats away at your mortgage and destroys your debt, as these are fixed payments for 30 years. The rents you receive from this property also increase from inflation and is tax free....a situation like that, paying off the mortgage would be detrimental...
Absolutely pay it off asap. It saves you tens of thousands in interest, free up money to invest and if you lose your job or can’t work the bank can’t take it for missing payments.
It does NOT free up money in case you lose your job. The money you pay on your mortgage is money you cannot invest. The odds are that your mortgage interest rate is lower than your potential rate of return. Historically, the market returns over 10%. Mortgages aren’t over that
If you lose your job, you aren’t getting a loan to give you extra cash. Home loans & home equity loans are loans against YOUR INCOME, not your home. If you don’t have income, you aren’t getting a loan. Banks don’t want to sell houses to get their money back, they want you to have a job to pay the money back
@@escapedfromnewyorkThe math is not that simple. You have to consider many factors such as your income, your employment stability, how close you are to retirement, how much money you have for retirement, what the outstanding debt is and other things. You’re also not considering the relief it provides when you know you own it. For me and mine…especially with current mortgage interest rates, the house is a high priority. Also, you are referencing historic returns for the market but that doesn’t account for streaks of years of bad returns. If I’m close to retirement and have good retirement savings, the mortgage is a drag on my freedom and ability to retire sooner. I’m paying it off under almost every scenario.
When I was 17 years old, my parents and brother and I were living in a 2800 square foot house in a very nice neighborhood in Houston. My Dad sold Real Estate. This was in 1981 and the Real estate market crashed. We packed up some, sold what we could and spent the next few years bouncing around crammed into 2 bedroom apartments while my we struggled to pay the rent and other bills. In 1984 my Dad had a great year and bought a house for cash. In 1990 the Real estate market crashed again. This time, he got a job selling roofs after the hail storms and nothing else changed. He still came home every night to that paid off house. I was 21 years old at that time and had just graduated college. This was the most important financial lesson I ever had. I am now 61 years old and I have not had a mortgage payment in over 25 years. The peace of mind this gives me is priceless.
We owe 25,000 left on our house! It will be paid for in 2 and half years!
I can't wait!🏠💯
I promise you. You're gonna love it.
As a self made millionaire with NO DEBT, I couldn’t agree more with everything you said here. Most people who say don’t pay it off are young fools, they haven’t seen a bear market in their entire lives. My 2 homes have been payed off for 10+ yrs. Life is good with NO DEBT.
Heck yeah! Pay your house off ASAP! The pressure of not having a mortgage is a relief! No stress ! Stress can destroy your health! When I buy a Truck it's used for work it makes money! A Corvette makes me no money! Wake up America
Thanks. I'm a 100% believer. Bad times and financial difficulty can happen to anyone. Did to me and it's a real pain that can't be forgotten. Paid up home is a blessing.
having a home free and clear is like winning the lottery.
I follow Dave Ramsey. I paid my house off in October, 2024. It was such a relief.
I haven’t had CC debt for a while but nothing beats having the house paid off!
I have followed Dave for years, paid off CC debt, banked the 6months emergency fund, and now the house is paid off. Out of the three nothing is better mentally than paying off the house.
I’m now in the investment stage. 🎉
Nice...Good for You 🙂👍
Couldn’t agree more. My house has been payed off for yrs. I have NO debt. EVERYTHING I own, I own. Not the banks. I use a cc for convenience and pay the balance off monthly, use the points to buy necessities. I sleep really well. People who say don’t pay it off are fools. They haven’t seen bad times come, and when they do, you have peace of mind with a paid off house.
Actually, paying off a house in FL is a money saver in that you can self insure your home and not have to pay outrageously high homeowners insurance.
I made a mistake of moving to bigger condo 2020,had my old place paid off,insurance is killing my mortgage payment, going to bite the bullet and pay it off this summer, and drop insurance ,westpalm area. ✌️🏌
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
I expect home prices to decline in the future, but for now, I advise diversifying investments beyond real estate. With high mortgage rates, signs of a recession, and stricter lending policies, shifting capital into financial markets or assets like gold offers a more secure strategy. The housing market may require a 40-50% correction before reaching stability. In times of economic uncertainty, seeking guidance from an experienced financial professional is crucial.
This sounds great! Do you have any professionals or advisors you could recommend? I could really use some guidance on proper portfolio allocation.
Jennafer Beaver Turner is the licensed advisor I use.
Just research the name. You'd find necessary details to work with to set up an appointment
I truly appreciate the suggestion-it was exactly what I needed! I looked her up on Google and checked out her website, and her investment background is impressive. I’ve reached out via email and am looking forward to her response.
Best advice to pay off your mortgage as soon as you can. It's old school logic that currently some "so called experts" keep trying to refute. But it's just common sense. That mortgage payment can now go to savings, investments, college funds, and scores of other areas rather than making a bank richer.
Right!😊
Meanwhile no one seems to care how much they are paying in income taxes. There can be a lot of taxes saved by carrying debt and funding retirement accounts, and the accounts have annual limits. You can't end up with $5k/mo in free cash flow and then choose to divert it to retirement accounts. In fact you'll have nowhere to put it without it being taxed into the dirt beforehand. Instead you spread the funding of these accounts across many years for full tax advantage. Since 401k participation in this country is super low, I expect tons and tons of "debt free winners" have actually been hemorrhaging income taxes the entire time and don't even know it. I save about $35k a year in taxes by carrying debt instead of paying it off.
I paid off my house and lake property 10 years ago. Best thing I ever did. 4 heart attacks and 2 strokes later I am unable to work. Plus I only paid 87500 for the house and it values at 200000 now. Not to shabby. I have 25000 into the lake property and its worth 150000 now.
Paying off loan is guaranteed return, stocks or investments are not guaranteed return.
Paying off your house is like having gorilla money. What is gorilla money? Where does a gorilla sit? Anywhere he damn pleases.......lol
I have a small house paid off in Dayton Ohio. Best feeling ever. I''ve had jobs come to an end and I've had to sale my previous home in order to downsize. Buying a smaller home cash has changed my view of life, it has giving me a different type of peace and less panic with the family when emergencies come up.
Paid off my 30yr mortgage in nine years over 16 years ago and only debt I ever had.
Also paid cash for my beach home after housing crash in 2008.
The same people that said it was stupid and dumb talking about "good debt" are still in the matrix with debt and working.
I'm retired,debt free,and FIRE at 49 in 2020 currently spending the winter in Bali.
I just started investing/saving early at 15 and all of it has been working for me ever since.
Pay it off I retired at age 52 no debt at all cash for cars. I’m 70
Actually, paying off a house in FL is a money saver in that you can self insure your home and not have to pay outrageously high homeowners insurance.
Edit: You covered this in the video.
We’re in CA. Can’t afford to pay it off early. It’s more than tough to just pay the mortgage. 😢 At least the interest rate is sub 3%. 🤷🏻
Thank you so much you made it so simple and clear I’ll be paying my house off this year!!!!and going to the beach!!!
Man I'm loving these videos, you're getting me motivated 👍😃
James Clark's market insights have consistently led to profitable decisions.
Many new tra-ders face challenges without proper guidance. I found success by learning from James Clark's expertise.
That's precisely why I trust and value the guidance of Mr. J. Clark in all my endeavors.😊
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
James Clark's market insights have consistently led to profitable decisions.
Idk.rite or wrong but just the felling alone of knowing it payed off is priceless.
I owe 245,000 on a mix if single and multi family homes (19 doors) and i absolutely cannot wait till my stuff is paid for ..i have right at 5 years left. Ive thought about oulling equity out of one house and just paying everything off and dropping the insurance on the houses that are paid for but i just hate the thought of starting the interest wheel back over so ill wait it out.
I didn't pay my homeowners policy . The premium was double what it was a few years ago. The deductible amt was crazy for huricane. I had very little damage from the last huricane and I'm getting close to 5% interest on the $ i could have wasted paying for insurance.
I WIILL ever be paid as long as the property taxes keeps going up and up to the point it becomes like a mortgage payment and stage will take you house !! Abolish property taxes
Solid video Jack! Very informative and useful information.
I have always bought homes within my means. I only bought ones that needed renovations and could be paid off in 5 years or less after my first mortgage. I get the minimum of what I need. A house isn't for "flexing." Disposible income for investing, traveling, and FU money is a flex.
Go Cav!! Retired Army here also receiving VA.
Makes total sense! You speak the truth!
I learned how to build my own home for this very reason. I am currently building my second new home with cash. When we are done, we will have 400,000 in equity. I can use that equity to build another home on my other lot to sell to the public. We live off one income and use the other income to invest.
Good advice sir.
Thanks for watching
Agree 💯 with you! The home we live in is fully paid for. We owe $26,000 on one of our rentals, of which we could pay off if we wanted. About 60% of the cash flow goes toward additional principal payments, and 40% is set aside for repairs or unexpected expenses. The A/C compressor went out and cost $3,250 to replace, but with that money set aside, we didn't have to sweat it. The other rental is fully paid for from part of the sale of our principal residence of 32 years. We currently live on a 5-acre mobile home that we fully paid for from our 401-k. I don't say this to brag since our net worth is around $700,000. In today's dollars, it's nothing to write home about. Our goal is to be debt free, stress free, and have peace of mind that we are not going to loose the roof over our heads due to debt. This doesn't come overnight, but with some discipline and a little bit of sacrifice, there is some light at the of the tunnel. The tax advantages you get from owning your first rental can propel you there much quicker, but that is the subject of a different topic.
Bought a house in the '60s at 6% interest and by the seventies the note was like a utility payment because of inflation. The only value in paying off your note would be if there was no inflation. If you bought your house with 20% down you will be able to sell it even at a loss if things go south because of inflation. There is a value in having security but that should be in your ability to earn. Everyone has a perspective, thanks for sharing yours and allowing me to share mine.
I speak on this on my channel. Common sense is to pay off your biggest expense first. That will produce your biggest cash flow. Not rocket science
"common" is the problem in common sense. There can be much more to consider than "money in, money out". People that make a lot of money end up paying a lot in taxes. I pay almost 34% in taxes, so focusing on routing money to tax deferral rather than paying down debt makes me 34% on my free cash flow every year, instantly. Self employed people can take even more advantage of this. This is not rocket science either. "Freeing up more cash flow" is just maintaining the same cash flow that is already taxed into the ground. You never escape it. There are better ways of managing this for the people that are willing to see it.
I get the logic of people saying you could get more money by investing... But wouldnt i make so much more money if i pay off my house and then use those funds to invest freely?
I like to play things extremely safe when it comes to life. Id rather be comfortable and happy than rich.
No. there are several ways that works and several ways it doesn't. To cut it short: paying off the house and then using the extra money to invest means you are paying income tax the entire time. Carrying a mortgage and dumping extra money into a 401k wins every single time because of income taxes. Now if you can fully fund a 401k as a regular working joe, and still have money leftover, then yes pay off the house. however statistics show that most people never come close to filling their 401k. So these people are spending a lifetime being gouged by teh tax man and still call it a win.
I agree. Thank you.
Fellow Real Estate professional here and... AMEN Brother! Your primary family house is your HOME not an asset to be used as collateral... It is the ONLY thing you need to protect (other than your family obviously) with all your being. Sold one of our investment property (10 year flip and hold) and paid off our primary home with much of the profit. Security is worth the world. If things go to crap, you are not homeless.
In 2005 till 2007 my first house was my 🏧 I got out just in time within 7 weeks. Needless to say I bought the next house at the bottom and haven't borrowed one dime since
The position of FU feels great. I just got there on a small scale. Now I find myself focusing on finding opportunity.
I paid off our home in 13 years and the freedom feels good and I wanted a safe space.
I had a paid off mortgage before the housing crash. Credit froze. I was able to buy my primary home for 43% of its original value in 2007. It was so cheap, i bought a mini farm in 2008.
solid fact. Own your house asap, then invest more - solid principle to achieve financial freedom
great video
In Alabama your house is not protected from medical bills. I wish it did.
I wish I could pay my mortgage, specifically after learning the amount if interests I will pay, is another house
You are very helpful God bless you.
PAY IT OFF! And fast! I own mine free and clear now and it is an amazing feeling. In 08 we almost lost everything including our business and home. After that we decided to get out of debt asap in case something like that ever happened again. Now I’m working on getting the patent to my land so I don’t have to worry about Real Estate taxes. Get free of banks!
Love your videos
2.7% fixed
Very good advice couldn’t agree with you any more👀💯🙏
What if you have a pension that will always cover my mortgage and life insurance and survivor benefit that my spouse and heirs will have enough to cover the mortgage and then some?
You're fine. The debt avoidance / no mortgage obsession is not the only way to get things done. My guess is there are thousands and thousands of people completely fixated on paying off their house while at the same time they pay out the wazoo every year in income taxes. could they arbitrage less income tax and carry some debt to do far more with their money? Yep. Is this some kind of massive risk? Nope. Are they going to listen? NOpe.
Imagine this: you’re sipping coffee on a balcony overlooking a city skyline or lounging on a pristine beach, all while your investments are working their magic. With copytrading, you can finally pursue your passions, travel the world, and create unforgettable memories with your loved ones. It’s all thanks to the power of copytrading from Sophia E. Haney and the life you’ve always dreamed of!
Guess what? I’m celebrating a $500k stock portfolio today! It all started with a modest $70k, and I’ve been making smart investments that have paid off tremendously. Now, I have the time to enjoy my family and plan for the future. Copy trading has been a game-changer for me.
I’m curious, do you have a professional broker who helps you with your investments? If so, I’d love to learn more about how you work with them.
Can't share much here, I take guidance from ‘Sophia E Haney’ a renowned figure in her industry with over two decades of work experience. I'd suggest you research her further on the web.
SHE’S MOSTLY ON TELEGRAMS APPS WITH HER NAME
Sophiahaney she’s verified
Down to 30k morgage this year, paid of in 2 more years.. (after many years). woke up to the logic about having a paid off house a year ago ... less debt = always better..🏠
We have a long long way to go but this is our goal
Btw my homemade marinated farm animals maps on the bbq are delicious.Restaurants can’t beat me
Paid off several years ago. Totally worth it. Great piece of mind and I own it! I borrowed 100000 euros. Over 15 years repayment Id repay 120000 euros, over 25 years around 140000. With early payment I repaid around 104000 by keeping interest super low.
👍 It would have been great to have heard this 50 years ago! 😊
Very insightful. After listening to your arguement, I tend to agree with you.
I have 18 apartments real estate is great but I still won't pay off my 3% 30-year mortgage on my home. Or my 3.75% 30 yr fixed covid loan.
You still come ahead if you pay off the mortgage. Instead of the 2% delta( 5^% bank account - 3 % mortgage rate example) you would get 3.15% (3% freed up cash flow x 1,05). Just doing simple math- no compounding,. 3.15% > 2%. - pay off house.
My 2.3% assumable loan has a PV of at least $120k. I could split with buyer and still do great. If i paid off loan, no extra gravy.
Thank you! Just found your channel and sub’d. 🙏🔥
Awesome, thank you!
His face expressions are just hilarious
How do you feel about umbrella policies given having a house with homestead but also have rental properties?. Big picture thoughts given todays sue fest/fraud environment
What advice are you offering homeowners that live through a financial crisis and their home values drop from 800k to 300k. If you’ve paid that mortgage off at say 600k you’ve lost all of that equity for at least ten years.
Interes deduction is only equal to your tax rate %! I. E. 8k interest at 32%tax rate= interest $$$ lost. Forever. Calculate your ACTUAL INTEREST PAID ( even after deduction) is real money you’ve lost.
Inflation is going up, rates don’t reflect real debt, these will come home to roost. And many other economic issues in play. My father always told me “don’t spend money that isn’t yours!”. House is payed off, low overhead, and hold extremely low debt. The return is piece of mind.
Working hard to pay my house off!
You got this!
I just bought at 6.6% I AM ABSOLUTELY paying it off as fast as possible. I don’t want anyone to come tell me that I owe them
I’m at 2.3% on a 15 year and no way I’m
Going to pay 💰 it off
It’s a nice fealing to pay off your house, but I don’t believe that you were totally honest. Amortization is the problem $200,000 loan with a 30 year mortgage. The first year you will pay $8000 in interest and $3500 on principal. On the 30th year you’ll pay $244 in interest and $11,200 on principal. So that means in the last year you will be paying .1% (point one percent) interest. I believe the banks want you to pay off your mortgage at the end of the loan but they’re betting on the fact that most people refinance in the first five years .1% (point one percent) interest is a lot lower than 4% simple interest that you can get on a savings account.
the amortization is not a choice by teh bank, its the only way the math works. if you change any part of the monthly interest amount it will end up altering the overall rate or the term. the interest on loans is a widely accepted standard because of the math.
I never "paid off my house". I just bought cash my cute amazing apartment in one of the best neighborhoods in Düsseldorf, Germany. So many bla bla about this topic. Never was a debt of any kind in my life. And bought a rental before bought my apartment. And relocated from a different country. Any my next step is to buy another rental and then will be financially free work foe fun like I always wanted. 2 years away from that at most.
We skipped the fancy dinners and bought 2 for cash
What you said about your father THAT is the reason! God forbid something happen to you like you croak early or become super sick and the bank throws your house wife and your 4 kids out on the street after you’ve been paying on your mortgage for 25 years… put your family first and do all that tricky dicky investing shit after you have some real sense of security. My soul wouldn’t be to rest at peace. I didn’t do my job as a protector a provider a husband or a father. Your dad was thinking like he had people counting on them.
My wife and I are starting off 2025 strong our home is paid off and our vehicles are paid off all the money that's coming in is 100% profit.
Yeah I paid off my house now I have to pull money out because I just focusing to pay off not fix or updating anything in my house!
Now new A/C water heater kitchen bathroom floor etc it’s around $140k … including my work so it’s more if I hire someone who do all the work!
I paid my house off and I'm glad I did. 1. I don't have a crystal ball. I don't know the future and investments can be lost. You never know what's going to hit you in the future. 2. Peace of mind. It felt like a ton of bricks off my shoulders. 3. When I decided to move I sold my house and paid cash for a new one. If you still owe on your house it makes it more difficult to move. 4. The repeal of glass-steagall in 1999 caused a housing crisis in 2008. Glass-steagall was in place to prevent a crash like 1929. The housing market is the backbone of this nation, that is why the globalist want your equity.
If you lose your jobs, or one of the household income, or have medical issues and unable to work, you will lose your roof.
Peace of mind knowing your house is paid off alone worth it many times over.
Paid my house in 11 1/2 years. Could I have made more money in the market by investing that money instead? Sure. Do I miss it? No, not worth the risk. No risk is my reward.
My house is paid off because it's that feeling in the Gut that NO emeffer can touch it.
Well, except for the thiefing property TAX emeffers.
I love having FU money. I have been debt free for 15 years.
You can own a home and lose it and get screwed by insurance companies, happening all over .
Please provide one example where an insurance company caused the loss of a home?
@@RickAndell you kidding me just the price gouging is causing people to not afford to pay. Years and years of paying and when they need their insurance to pay , they finds a millions reasons not to pay , you kidding.
@@gracetou8963But the point of this whole video is the financial and “peace of mind” benefits of paying off your home.
If your home is paid off, you are not required to have insurance. The insurance company cannot take your home from you. YOU are in control, not the insurance company.
The only entity who can take your home from you is the government if you don’t pay your property taxes.
@@RickAndell I understand , I know someone who recently lost their home. It was paid off but because they could not afford the 10 thousand dollar a year flood insurance they lost it.
The lower the interest rate the faster it gets to 0
Don’t listen to these people bs not paying off your house. Majority of them work for the real estate. Paying have so much benefit to the owner. It’s common sense.
locked with fixed 3.99 here
You will sleep better at night. These gurus will tell you that there is no return on your equity. Yes but what they don't ell you is that paying off your house frees up money that can be put into assets generating a return. You don't have that monthly payme ts. Also, losing your job or primary income source, you still have that monthly mortgage payment if you are.carrying a mortgage.
I think Ramsey's 10 to 12% interest in mutual funds is absurd. Not going to happen.
You're wrong, AGTHX. average better than 11% over the past 50 years.
Anyone trust the stock market now? So where are you going to invest? Treasuries 4.24% now.
locked at 3.99 here
Agree
100%!!
Lose income… and you are in trouble.
I live in Clearwater, Florida. I have an interest rate of 2.78% I could pay the house off. You'll never escape property taxes. I'm married and I owe my wife a roof over her head, so if I paid the house off, I'd still want homeowners insurance. So most of the payment for my house is taxes and insurance. I could pay this house off today. The principal on this house is chump change. Make more money in investment's. I'd rather keep the money in the bank. Now I'm retired. I've got some money. So tell me why I should pay the house off?
Things go south. Your money is protected if invested in your house (Florida). Cash in the bank--creditors can take it!
My money is diversified in more than the bank. If things go south, I'll just pay the place off. I'm 67. I'm lucky I can do that. Most people can't.
@@watchingclosely1404 I guess I should say too that the house is almost paid off anyway.
@@AmericanConstellation 57 with house paid and lot's of diversification. My biggest concern is our litigious society. One wrong move or accident and you get sued for a gazillion dollars. Primary home is protected no matter what kind of judgement comes our way. If your broke, sell the house when the dust settles. It's 100% sure protected money. Of course, this is worst case but it's possible--never say never. We moved to Texas which also protects your homestead. It's great peace of mind but everyone's situation is different.
Should you pay off your mortgage in a declining market?
You eschew risk yet talk about stripping down your home insurance? Let's allow a massive asset that is paid for potentially get destroyed with no recourse? That's risk, my friend. You're just preferring one risk over another.
I'm over 50. I maintain a mortgage because instead of paying the house off, I can route a lot of income into multiple deferred investment accounts. not only am I getting investment returns, but I am saving massive amounts of income taxes. I "make" $35k a year in tax savings before investment returns. This absolutely dwarfs interest costs and has made me a multi millionaire in a very short period of time. Honestly, anyone who considers a primary home mortgage as "excessive leverage" needs to stay out of advanced finance commentary.
I’m in the court of always put down the minimum to avoid PMI. Always get a 30 year fixed mortgage. Refinance principle when interest drops below 2.5% your rate. My thought is exactly what investors say,” never put all your eggs in one basket.” Case to point you never know what they will do to you for example the condos in Florida. Those paid off condos are damn near 100% loss. Fires in LA and Hawaii. Floods in NC and FL. Tornados in the Midwest. Sure they could come after you if you stop paying the mortgage but it’s rare and the litigation it costs the banks is not feasible for them. And you truly are tying up a lot of capital which is not working for you.
And even if mortgage paid off and self insure never really own it since have to pay property taxes each year (unless rated 100% disabled by the VA). If do not pay those property taxes the taxing authorities can place a lien on your property the same as a bank even if your homestead.
Ok self insure? Cons and pros. I have a friend in Palm Bay with mortgage 100% paid off and he self insures the windstorm. When I called him during Milton he a little scared of all the large tornados that spun off thruout the state.
However I have heard some insurers not paying out from L.A. fires so what good then is insurance?
@@davidfenton109 Exactly, we never really own a home in the U.S. The tax man can just raise to what ever he wants rendering your house damn near worthless. Besides, one of the worst SCOTUS rulings, your property can be taken for economic reasons by the state and given to private corporations through eminent domain. Kelo v. City of New London in 2005. Nope, I'll never pay a home off. I wonder how many people got suckered into paying off a home due to the high cost of insurance and cancelled them before getting wiped out in a fire, flood or some other catastrophe? Cash is fungible your home is not.
Oh yeah, pay it off. Why didn't I think of that? I mean, it's not like inflation has prevented us from making extra payments.
This reads like the talk of a privileged person who is liaded with money and has extra income.
Pay it off!