Re: The Economy: Maintain a mortgage or pay it off?
Good Point Beartrack.
Right, I didn't take that into consideration! My reasoning - I will be using the proceeds from my house sale to pay off TV mortgage! My analysis was flawed by my already made decision! :redface:
My apologies. Yes, in that scenario, you could live rent free. Another thought though, your $300K would be tied up and unusable for anything else, right? You'd need to not touch it for it to continue producing that rental expense. You could buy a reasonable house in TV for quite a bit less than $300K today, say $225 for a nice CY Villa? (Do they rent for $1500?). Buying in that scenario would give you no mortgage and $75K to squander, and theoretically, your house would appreciate making your investment most probably worth more at the end. Your $300K investment to make rent wouldn't really grow (using these very simple numbers).
But is certainly is a personal decision that needs to have your individual situation factored in, along with your desire to sleep well!
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