Comments on: The Wealthy Have Mortgages http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/ Double Your Site's Revenue - Scott Wainner on Web Business Tue, 14 Oct 2008 00:42:28 +0000 http://wordpress.org/?v=2.3 By: Mo http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-2036 Mo Tue, 20 May 2008 18:51:26 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-2036 Uhhh... who told you that? MANY Canadians DO carry a mortgage. If you live in Vancouver, BC the average price of a home is OVER $700,000 -- try paying cash for that if you're only making $65k per year. Unless you're living in a VERY small community, Canadians do carry a mortgage. Uhhh… who told you that? MANY Canadians DO carry a mortgage. If you live in Vancouver, BC the average price of a home is OVER $700,000 — try paying cash for that if you’re only making $65k per year. Unless you’re living in a VERY small community, Canadians do carry a mortgage.

]]> By: Flimjo http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1559 Flimjo Fri, 14 Mar 2008 16:00:36 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1559 I disagree, buys. The wealthy earn way more than 10-12% on their investments. The catch is that they don't use index funds or securities. They invest in starting businesses and buying rental properties for cash flow. I disagree, buys. The wealthy earn way more than 10-12% on their investments. The catch is that they don’t use index funds or securities. They invest in starting businesses and buying rental properties for cash flow.

]]> By: Scott http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1431 Scott Sat, 08 Mar 2008 06:36:33 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1431 It has held true over the past 50 years. We're clearly in a recession at the moment, but barring some sort of cataclysmic event, it should hold true for the next many years. It has held true over the past 50 years. We’re clearly in a recession at the moment, but barring some sort of cataclysmic event, it should hold true for the next many years.

]]> By: HgH http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1368 HgH Fri, 07 Mar 2008 00:25:37 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1368 While this used to really hold true, the ability of even the truly wealthy/knowledgeable to earn 10-12% annually through investing, even with index funds, isn't what it once was with today's chaotic markets. While this used to really hold true, the ability of even the truly wealthy/knowledgeable to earn 10-12% annually through investing, even with index funds, isn’t what it once was with today’s chaotic markets.

]]> By: Marko Pyhajarvi http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1097 Marko Pyhajarvi Mon, 07 Jan 2008 07:15:44 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1097 Good post, Scott. If I had $5M I would: - buy a house for $300K - invest $3M to securities - invest 1.7M to houses and other lower risk targets Well, that's just simplified, but the point is that instead of buying a house of $5M in cash, I would be satisfied with a regular house and use my capital money to make more money. Good post, Scott. If I had $5M I would:
- buy a house for $300K
- invest $3M to securities
- invest 1.7M to houses and other lower risk targets

Well, that’s just simplified, but the point is that instead of buying a house of $5M in cash, I would be satisfied with a regular house and use my capital money to make more money.

]]> By: Steve http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1096 Steve Mon, 07 Jan 2008 01:31:27 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1096 In US, you also get tax write-offs. But in Canada, interest on a home mortgage is not tax deductible. That is why many Canadians have no mortgages. In US, you also get tax write-offs. But in Canada, interest on a home mortgage is not tax deductible. That is why many Canadians have no mortgages.

]]> By: Scott http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1094 Scott Sun, 06 Jan 2008 22:45:55 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1094 Appreciation is the same whether you pay cash for the house or mortgage it, and mortgaging it lets your money work for you whereas paying cash does not. Appreciation is the same whether you pay cash for the house or mortgage it, and mortgaging it lets your money work for you whereas paying cash does not.

]]> By: MikeInAZ http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1093 MikeInAZ Sun, 06 Jan 2008 22:43:25 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1093 Good points, but I think issue with just this: <blockquote>Add to this, though, that your $5M home is an appreciating asset, and that it should appreciate at anywhere from 5% to 10% per year, and home ownership via mortgaging looks very attractive. </blockquote> The appreciation is not guaranteed and 5-10% a year is not normal (too high). Also there's a great possibility, especially in the USA, that prices will fall. Other countries have that risk too. Good points, but I think issue with just this:

Add to this, though, that your $5M home is an appreciating asset, and that it should appreciate at anywhere from 5% to 10% per year, and home ownership via mortgaging looks very attractive.

The appreciation is not guaranteed and 5-10% a year is not normal (too high). Also there’s a great possibility, especially in the USA, that prices will fall. Other countries have that risk too.

]]> By: Paid Surveys Reviewed http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1090 Paid Surveys Reviewed Sun, 06 Jan 2008 18:39:13 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1090 Welcome back Scott. I hope the holidays brought you lots of visitors and lots of money! I have two properties on mortgages, and have just decided to sell the one I rent out because the interest rates have gone up a lot in the UK recently and it no longer stacks up as a rental investment. That is the only thing I would say in addition to your post, if the interest rates go higher (in the UK they have been up to 15%) you could end up in a worse position. This graph shows http://www.houseweb.co.uk/house/market/graph.html Keep up the good work. Happy New Year James Welcome back Scott.

I hope the holidays brought you lots of visitors and lots of money!

I have two properties on mortgages, and have just decided to sell the one I rent out because the interest rates have gone up a lot in the UK recently and it no longer stacks up as a rental investment.

That is the only thing I would say in addition to your post, if the interest rates go higher (in the UK they have been up to 15%) you could end up in a worse position.

This graph shows http://www.houseweb.co.uk/house/market/graph.html

Keep up the good work.

Happy New Year

James

]]> By: Webkinz http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1088 Webkinz Sun, 06 Jan 2008 16:33:16 +0000 http://www.wrevenue.com/2008/01/06/the-wealthy-have-mortgages/#comment-1088 Glad to see you back from a busy holiday season. This post just inspired me to go learn more about real estate investing. Glad to see you back from a busy holiday season.

This post just inspired me to go learn more about real estate investing.

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