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I agree with that! I am just a bit resistant to the view that people give out that it is never a better idea to pay down mortgage at current interest rates because shares on average give a better return.
If you've already bought the property, then what you do with paying the mortgage is a guaranteed return / saving. That's not something to be sniffed at, particularly if (as at present) you might worry about whether equities are overvalued.
andyfallsoff-
As above, in a high inflation low interest rate situation paying off your mortgage of 1%-2% is not a return.
If your mortgage rate is 5% then knock yourself out.
I think it’s a lose-lose situation tbh - paying down debt gets you nothing, and investing feels riskier than it should. Do your research and roll the dice.
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I know what you mean and it's often true, but it's not a guaranteed return if the price of the property falls (relative to inflation) and you have to sell.
Maybe that's less likely or more likely than the stock market crashing, I don't claim to know but it will depend on a lot of things personal to you like where your property is and if your partner is about to divorce you.
Howard
Belagerent
Most people say don't rush to pay off the mortgage because you should be able to make more than the interest in the market, but also most people pay off the mortgage anyway because it's attractive psychologically.
It may or may not be better. You guarantee having a roof over your head, but maybe the value of that roof drops like crazy and the drop coincides with you needing to move.
I think that people should look at their property as another investment, ie when you look at the spread of all your assets Inc property, are you happy with how they're balanced and if you want to over pay how do you feel about moving that balance further towards property.