Reply to If paying off your mortgage is dumb, why do so many rich people do it?

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Reply to "If paying off your mortgage is dumb, why do so many rich people do it?"

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[quote=Anonymous][quote=Anonymous]Can we stop this false narrative now.  Most wealthy people do not have mortgages.  Full stop.   Some do and the reasons why are on this thread.  But most do not. Most use money from outsized market gains like before last year’s meltdown and pay off any debt.  Why? The really wealthy 25 million plus do not want to deal with debt and are uninterested in the arbitrage.  The wealthy 10- 25 million know how quickly the world turns on you and that debt should disappear in good times.   Below 10 you are doing great but you are not wealthy.  [/quote]

You have to stop this false narrative that wealthy people do not take mortgages. Maybe that's true for the small UMC DCUM rich. But the true wealthy people do take mortgages.
I used to work in real estate in New York and I can tell you that 90% of people buying expensive properties had a mortgage. No rich person in their right mind would buy a $10M property and pay cash when they know they can borrow that money at 3% and instead invest the cash in a hedge fund for a much higher return.

Explain to me why Zuckerberg, Buffett, Elon, etc... take mortgages. Do you think they are stupid?
https://www.fool.com/the-ascent/mortgages/articles/why-did-mark-zuckerberg-get-a-mortgage-on-his-home/

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