Reply to Saving for college vs paying off house

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]It's not even close

To help understand the economics of the mortgage decision, we test two scenarios: 1) a family uses $200,000 of savings for a home, and invests each month an amount that would otherwise be the mortgage payment (less the tax deduction), and 2) a family invests $200,000 in stocks and bonds while borrowing the same amount on a 30-year mortgage.

Over the course of 42 years, the family that borrows sees a positive outcome in 97% of the time, which is important for major matters like your retirement. The only period when paying cash would be better was between May and December 1981, when the mortgage rates ranged between 16.4% and 18.5%. If we allowed for refinancing, the mortgage-and-invest approach would be favorable at all time.

https://www.forbes.com/sites/lawrencelight/2015/11/14/whats-the-smartest-move-pay-off-mortgage-or-invest-the-money/#14f49e6bcde2
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So, why don't you take out a loan and invest that money in the stock market if you are sure 97% of the time you will come out ahead?[/quote]

+1. Similarly, why not buy as many properties as the banks will let you and pay them all off as slowly as possible while investing the difference? [/quote]

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