3 ms·
Well sure. The homes my landlord rents are mortgage free. I can say the same for folks I know with 2nd vacation homes and airbnb rentals. For the rest of my an
by WarOnPrivacy 3y ago
Well sure. The homes my landlord rents are mortgage free. I can say the same for folks I know with 2nd vacation homes and airbnb rentals.
For the rest of my anecdata: For folks I know living in their own households, about 20% have it paid off. About half of those folks own multiple homes.
- bonyt 3y agoThis specifies owner-occupied.
- WarOnPrivacy 3y agoAppreciate the clarification. I was on my way out and didn't read thru.
- presidentender 3y agoA landlord who doesn't use leverage is in the wrong asset class. Even if they'd somehow paid off the property before, anyone who didn't pull out cash when rates were below 5% and invest it elsewhere is a fool.
- postalrat 3y agoThis explains why they own many mortgage free houses and you do not.
- presidentender 3y agoTrivially, yes: I invest with borrowed funds, while the hypothetical free-and-clear landlords in the previous example have paid back their loans.
- michaelt 3y ago> For folks I know living in their own households, about 20% have it paid off. Sure - if you're 25 and most of your friends are aged 20-35, probably <40% even own a home. And those that do are probably <10 years into paying it off. Hell, a few years ago when interest rates were zero I heard a lot of people saying it was a bad idea to pay off your mortgage early, and far more sensible to invest the money instead. So even if the people your age got a big cash windfall, they might not have paid off their mortgage. On the other hand, if you know a bunch of 65-year-olds who've had maybe 40 years to pay off their mortgage, and 40 years of inflation on their side shrinking the principal? It's probably a different story.