-
I don't disagree in substance, but this entirely relies on an assumption that the conditions for that equity growth will continue so your investment doesn't plummet.
All you've said about equity markets being inflated due to PE, low interest rates etc could be taken as a reason why overpaying is a safer choice as you're taking a guaranteed return with zero capital risk instead of a hope of an increase (which, if shares are all overvalued right now, might wipe out and also take a chunk of your capital)
andyfallsoff-
your investment doesn't plummet
Spot the global catastrophe
If there is a real financial melt down that the hedging you pay funds to implement can’t deal with and you ‘lose’ a lot of money then you’ll have bigger things to worry about - your job will be gone and there will be no petrol in the tanks. Zombies will walk the streets!
(And - if you look at long term historical returns from ‘safe’ investments you’ll see that on a long enough timeline it’s pretty good money. There will be ups and downs along the way but stay in long enough and you do well.)
Howard
Yes. The ‘overpay your mortgage’ is kind of residual advice from when interest rates were 5% and the rest. In low interest rates / significant inflation situations you would do better to invest as there’s a chance you won’t come out poorer.