Do people with 1.8mil+ houses have mortgages?

[Anonymous]

We bought $1M home in 2011, with a mortgage. The value of the house doubled. We recently sold it at $2M and paid off the remaining balance of the outstanding mortgage.

[Anonymous]

Anonymous wrote:We bought $1M home in 2011, with a mortgage. The value of the house doubled. We recently sold it at $2M and paid off the remaining balance of the outstanding mortgage.

LOL, of course you did. That's what happens every time somebody sells a house -- the mortgage is paid off. Duh.

[Anonymous]

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

The stock market has made that much and then some until this year. And your home's value isn't going to go up that much in the next couple years. AND you'd have to sell your house to see any of that profit anyway.

So, no -- I'm not impressed.

[Anonymous]

Owning your home is priceless, for any additional property, take low interest mortgage.

[Anonymous]

Anonymous wrote:We bought $1M home in 2011, with a mortgage. The value of the house doubled. We recently sold it at $2M and paid off the remaining balance of the outstanding mortgage.

Yes, when you sell a house the bank usually wants their portion of the money????

[Anonymous]

Anonymous wrote:

Anonymous wrote:$1.8M is not that much OP. That's upper middle class, and of that group the vast majority have mortgages.

I would say mortgage free would start around the $5M-$7M mark.

You are so wrong. Anybody with an ounce of financial savvy worth that much wouldn't pay cash. Mortgage rates are too low for that to make sense -- even at current interest rates.

You just outed yourself as middle class.

THE HORROR!!’

[Anonymous]

Yes because we got an amazingly low mortgage rate.

[Anonymous]

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Do you understand leverage? If you'd bought that same house in 2017 with a $1.3 million mortgage, and invested $1.3 million in the stock market at the DJIA, you'd have $1.9 million, an average 10% rate of return. Even deducting 3% interest on the mortgage, you'd still have a 7% net return and your house would still be worth $2.6 million. Your total profit would be $1.5 million vs. $900k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Do you understand leverage? If you'd bought that same house in 2017 with a $1.3 million mortgage, and invested $1.3 million in the stock market at the DJIA, you'd have $1.9 million, an average 10% rate of return. Even deducting 3% interest on the mortgage, you'd still have a 7% net return and your house would still be worth $2.6 million. Your total profit would be $1.5 million vs. $900k.

Clearly having $1.7M in cash does not mean they are good with $$$.

[Anonymous]

Its not like people don't lose money in stock market or in other investments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Do you understand leverage? If you'd bought that same house in 2017 with a $1.3 million mortgage, and invested $1.3 million in the stock market at the DJIA, you'd have $1.9 million, an average 10% rate of return. Even deducting 3% interest on the mortgage, you'd still have a 7% net return and your house would still be worth $2.6 million. Your total profit would be $1.5 million vs. $900k.

Clearly having $1.7M in cash does not mean they are good with $$$.

Well, not worse than random internet experts, most of whom not have 1/4 of $1.7 million.

[Anonymous]

Anonymous wrote:Owning your home is priceless, for any additional property, take low interest mortgage.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought our 1.7 million dollar house in 2017 with cash. No mortgage. It is now worth $2.6 million. We have made more in the last 5 years from this investment than anything else we would have invested the cash in. We have additional funds invested so this keeps things diversified.

Do you understand leverage? If you'd bought that same house in 2017 with a $1.3 million mortgage, and invested $1.3 million in the stock market at the DJIA, you'd have $1.9 million, an average 10% rate of return. Even deducting 3% interest on the mortgage, you'd still have a 7% net return and your house would still be worth $2.6 million. Your total profit would be $1.5 million vs. $900k.

Clearly having $1.7M in cash does not mean they are good with $$$.

Sour grapes?

[Anonymous]

With interest rates around 2-3 percent a good argument could be made for taking out a large mortgage and investing elsewhere. Not at 6 percent though - might as well burn your cash. You can actually look up the amount of a lien on a house without going to the specific state. I forgot the site but it seemed incredibly accurate.

[Anonymous]

People who buy within their means and pay them off, are less likely to foreclose or go bankrupt.