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Mortgage free. Anyone here live mortgage free?

Answered 4 years ago

Would you continue living mortgage free or get back into debt to buy your dream home. (nothing is wrong with current house decent size block and house nice location) just have always wanted to live an a small acerage further out of town.


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ANSWER
4 years ago
I’ll be mortgage free when my and my husbands parents die. Probably not anytime soon. But once I’m mortgage free I will never get another mortgage.

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REPLY
4 years ago
You’re sadistic

REPLY
4 years ago
Sadistic? It’s fact. I won’t be mortgage free until an inheritance comes. Never said I wanted them to die. I’d rather have a mortgage AND my family still with me than be mortgage free without them.

REPLY
4 years ago
Why do people expect inheritance? And plan for receiving it? That's just awful

REPLY
4 years ago
Do you have a financial plan if you don't get it? What if it gets chewed up in medical & nursing home costs. You are assuming alot.

REPLY
4 years ago
I know I’m getting one because it’s been discussed. I’m an only child and my mum has a lot of money. I’m not assuming anything. She has enough money to cover nursing home fees if required, tho I’d like her to stay with me before moving into one of those places. She wants my family to be looked after so she’s made a will ensuring we are.

REPLY
4 years ago
Why are you assuming people expect inheritances? It’s pretty common that children will inherit their parents belongings after they’ve passed. My elderly parents own their home and have savings, no debts. When they pass, my siblings and I will inherit their home. It’s normal. It’s not that we are demanding it of them, but we know they want to leave it to us.

ANSWER
4 years ago
If you have a secure job go for the acerage. You won’t regret it.

ANSWER
4 years ago
My parents are mortgage free and want to move states so they can retire somewhere warm, but don't want to buy anything until their place is sold so they don't have to take on another debt.
That's the plan anyway. I think staying out of debt is sensible

ANSWER
4 years ago
I did we were in our late 30s. I always wanted a blue ribbon area close to the beach. My next purchase will be a country property. Go for it, if your asset net worth increases then the debt is good debt. You will just waste the money otherwise. The biggest change was our kids went public instead of private but that turned out to be a blessing. Good luck

ANSWER
4 years ago
If you have got safe jobs (well as safe as they can be in this environment), a country block would probably be worth the stretch.
I found that when I was stretched financially by moving to a better area, and a better house, that was when we made our biggest financial strides, and improved our asset base by big leaps and bounds.
And that was because when we were not stretched we tended to spend more "because we had the money". It wasn't committed to building assets.
And it is so difficult to discipline yourself to not spend, unless the income is committed to savings.

Personally I would not buy an investment house. One bad tenant can destroy the financial benefits. And I know so many people who have hit disasters because of bad tenants, or lengthy vacancies.

If I was you, I would get the acreage you know you would really love, with a decent house, and pay it off as fast as you can go. An offset account linked to your mortgage would reduce your interest repayments, while still giving you accessible money for unexpected bills. All you salaries would go into it, and you only pay interest on the outstanding mortgage amount, minus the buffer you have built up.

Land is where the value is, plus position (like beachside, or great views). Also, in any recession, the more expensive houses lose the most value, the fastest. Average price houses hold up the best.

There is another alternative to build assets and avoid over spending, and that is to stay where you are, and invest in managed share funds - not buying individual shares, as that takes time and knowledge you probably don't have. There are lots of traps too. If you have a set amount going into that each pay, over time it builds up.

Barefoot Investor (Scott Pape), distilled the best of those investments (lowest fees and good returns). They are "set and forget". When closing down his share advisory financial consultancy, he stated that would be where he is putting his money.

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REPLY
4 years ago
This ^^^^

ANSWER
4 years ago
Depends on your situation I guess ie work situation and what you can afford. I love being mortgage free.

ANSWER
4 years ago
I would look at a small increase for my dream house.

ANSWER
4 years ago
I would change houses but not want to increase debt often you can get bigger properties further out for same cost. I would be very cautious about getting back into debt for a dream home as your dreams change. I WOULD however consider getting into debt to buy a small investment property which will serve you well later with tax offsets, capital gains and also borrowing leverage later in life, a little nest egg which may help you come retirement time. I am mortgage free on my home loan but I have just got a little investment property which doesn't cost much.

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REPLY
4 years ago
Lol. Don't do this

REPLY
4 years ago
Are you joking? Go and see someone for current financial advice.

REPLY
4 years ago
Yes absolutely see someone for financial advice. Don't rush into getting a rental that you will probably end up not getting rent for.

ANSWER
4 years ago
Depends how old I was.
We were 30 when we upgraded to our dream block, but stayed technically mortgage free as got a block with a second dwelling so we were actually better off by $200 a week.
I still we have gone back into a 300k or so debt at 30.
I’m 42 now and about a year off retirement. So no I wouldn’t do it now.

ANSWER
4 years ago
In a similar position, I have no idea what the answer is.