What's the mortgage rate? How does it compare to the investing ROI?lillo9546 wrote: ↑Tue Jun 13, 2023 1:31 amI was thinking of something, correct me if I'm wrong.
It is not worth buying a house with cash, as that cash could be invested in obtaining a net annual ROI of at least 3%, then using this ROI to pay off the mortgage. This is very simple, even a child gets there, but since we had focused on the "mental stress" factor, and being able to "sleep at night", this strategy would allow us to face the mortgage with a different mindset.
In practice, we have only given a small down payment for a house, the rest we have made a mortgage, which we repay with the interest generated by the cash we have invested. Which means, if we fail to pay the mortgage payment, for various reasons, and therefore we would be forced to leave the house, we could simply decide to sell it and repay the remaining portion of the mortgage, or simply leave it to the bank. In this case, we have lost our house, but our cash remains. Which bodes well for us, since with that money we could start doing the same cycle again. Then we have the option to try again.
Is this right? What did I miss? Other strategies?
Does buying a new house (in case of losing the current one) incur taxes and other additional fees?
Does housing tend to appreciate over time in your neck of the woods? If so, what's the average per year? After ten years with that rate, will that cash you're investing (and that hasn't moved due to using the gains to repay the mortgage) buy you the same house or will it not suffice?
On the psychological level, do you feel you own the house? Does it change how you "invest yourself" in the house?