said by DarkHelmet:said by nonymous:I am not risking that by taking out any more loans no matter how cheap.
That's where the problem lies. The risk is having your money sitting in a property that will rise and fall no matter who owns it. A $200,000 house going up to $250,000 will do that whether you own it outright or you have $20,000 invested in it. The difference is I have $180,000 to invest at 5-8% plus I get that same $50,000 increase. You get just the $50,000 increase. In 10 years we both get the same property increase say $100,000 but I have $360,000 on top of that. In another 10 years I have $720,000 more then you as we both get the $150,000 property increase. The risk is in owning your property outright. Even if you need to pay the mortgage with savings because you're unemployed you still come out ahead. Math is pretty black and white.
Unless you have a secure investment it could also go totally belly up. Out the investment and still have the house loan. I will still have a place to live no matter what its price is.
You are counting on always making 8 to 9 percent with no downside.