Quote:
Originally Posted by steveosnyder
I think you need to look at the numbers more -- with the rates at what they are right now (I can refinance at around 3.1%) I think you would be better not paying your mortgage off faster and instead investing more in something else.
Some people feel more secure in owning their home completely, but if you want to look at it as an investment (which it seems like you are) you would want to get the best ROI for your money. If you have 230(ish) K wrapped up in your house (your capital) and you have revenue of $1500 monthly (rent) and expenses of $240 (property/school tax), $100 (home renters insurance), and condo fees ($???, around what, 140 a month?). At those numbers, which I think are somewhat close, you would be getting back around 12k a year. That's only a 5.3% ROI with a lot of downside risks.
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good point with the rates, actually mine is lower than that, but without paying the condo off, and purchasing another place, i don't think i would want to handle more than one mortgage at a time, altho its doable, you just don't know what can happen with mortgage rates, and other "emergency" monies you might need at the time. nonetheless, $12k/yr (5.3%) is
pretty good for not doing much. as a long term investment, those numbers are good as far as yearly returns compared to like a GIC or any other form of rrsp which will give you a 2-3% yearly return if you're lucky?