My idea is likely way off to the extreme side and is likely not what most will do.
Our home ownership experience over 30 years has been a mixed bag. Most like a dichotomy. We have had a lifetime of family fun in the houses we have owned. The value is priceless. But...
Financially speaking it has been an unmitigated disaster for most of the time. The first house we owned, we broke even. All others we have lost money on. The most recent one that we owned from 2002 to 2019 best captures the “unmitigated “ perfectly. Ironically in about the same time frame I have done extraordinarily well investing. I have learned some lessons. So here goes my conclusion,
Pay off our mortgage out of our estate, following the second death.
Rationale?
- put money into growing asset versus a declining one. Home ownership firmly belongs in the greater fool theory type. I have been the greater fool in each of our 4.
- Debt as a percentage of net worth most important; some absolute dollar amount isn’t.
- Interest rates are historically low. Let the bank own most of my house for as long as possible
- We live in a higher cost locale and the number of buyers for higher priced homes is forever declining.
- Any lack of sleep for me is based on slow but guaranteed mediocrity.
Our home ownership experience over 30 years has been a mixed bag. Most like a dichotomy. We have had a lifetime of family fun in the houses we have owned. The value is priceless. But...
Financially speaking it has been an unmitigated disaster for most of the time. The first house we owned, we broke even. All others we have lost money on. The most recent one that we owned from 2002 to 2019 best captures the “unmitigated “ perfectly. Ironically in about the same time frame I have done extraordinarily well investing. I have learned some lessons. So here goes my conclusion,
Pay off our mortgage out of our estate, following the second death.
Rationale?
- put money into growing asset versus a declining one. Home ownership firmly belongs in the greater fool theory type. I have been the greater fool in each of our 4.
- Debt as a percentage of net worth most important; some absolute dollar amount isn’t.
- Interest rates are historically low. Let the bank own most of my house for as long as possible
- We live in a higher cost locale and the number of buyers for higher priced homes is forever declining.
- Any lack of sleep for me is based on slow but guaranteed mediocrity.