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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.
Howard-
It is a return - that it isn't a gain in real terms is a different point. It's still a way that money can be used that is better than leaving it in cash, and you're locking in that benefit (even if all you should really describe the gain as is avoiding the loss of value that you'd get by holding actual cash).
I agree with your last part and am not trying to come across as saying investing in shares is dumb. I have regular share investment as well as mortgage repayment. I just think that describing stock returns as a 5% gain Vs a 1 - 2% gain from overpaying a mortgage is a misleading way of describing things as the risk profile is so different, particularly right now (and part of that caution is exactly because I have done my research).
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Are we in a high inflation situation? That's news to me.
andyfallsoff
ChasnotRobert
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.