Quote:
Originally Posted by JDMDreams
Would you rather $2m house free and clear, $0 in chequing to pay for your $10000 property tax, or $1m mtg and $1m in investments on a $2m house. I would sleep better at night with $1m in investments.  |
I would use my HELOC on my free and clear house to invest and write off the interest.
These are of course hypothetical black and white comparisons and each person is going to have different circumstances. In my case, I feel I'm so heavy in US equities that I don't want to add more fuel to the fire and that I should consider cashing out some of my gains now (and I have sold some lately).
I can't be chasing more 30% growth at this point so paying down my rather sizeable mortgage is a sensible play in the same way that Warren Buffett has been hoarding cash. I'm taking some risk off the table to enable more risk taking later.