Reply to Do people with 1.8mil+ houses have mortgages?

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Reply to "Do people with 1.8mil+ houses have mortgages?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]

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.  [/quote]

Clearly having $1.7M in cash does not mean they are good with $$$.[/quote]

Well, not worse than random internet experts, most of whom not have 1/4 of $1.7 million.[/quote]in guessing your the poster who just realized you forfeited over half a million dollars? [/quote]

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