this post was submitted on 28 Dec 2023
169 points (85.1% liked)
memes
15985 readers
2421 users here now
Community rules
1. Be civil
No trolling, bigotry or other insulting / annoying behaviour
2. No politics
This is non-politics community. For political memes please go to !politicalmemes@lemmy.world
3. No recent reposts
Check for reposts when posting a meme, you can only repost after 1 month
4. No bots
No bots without the express approval of the mods or the admins
5. No Spam/Ads
No advertisements or spam. This is an instance rule and the only way to live.
A collection of some classic Lemmy memes for your enjoyment
Sister communities
- !tenforward@lemmy.world : Star Trek memes, chat and shitposts
- !lemmyshitpost@lemmy.world : Lemmy Shitposts, anything and everything goes.
- !linuxmemes@lemmy.world : Linux themed memes
- !comicstrips@lemmy.world : for those who love comic stories.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
LOL please remind me again why financial experts advise against paying for a house in one lump sum?
Interest is infuriating. Imagine paying $377 a month for 30 years just to pay off that last dollar you left off at the beginning🤦♀️
Liquidity Risk: Paying in full ties up a large amount of capital in one asset, reducing financial flexibility and liquidity.
Opportunity Cost: The capital used for a lump sum payment could potentially yield higher returns if invested elsewhere. Although, at current rates that is probably unlikely.
Leverage: Mortgages allow for leverage, where you can control a large asset with a smaller initial investment.
Interest Rates: With historically low interest rates, financing can be more cost-effective than using cash. This is currently not true.
Diversification: Investing the money in a diversified portfolio can reduce risk compared to putting it all in a single property. See Leverage.
Tax Benefits: Mortgage interest payments can often be tax-deductible, which is not applicable when buying outright.
Okay but if you pay it all off in one lump sum there won't be any interest payments at all. So both scenarios kinda break even in that regard.
Ah, so it depends if you want to buy a house so you have somewhere safe to live that you can't be evicted from, or whether you want to use it to destroy society for your own immoral personal profit?
[Edit] Sorry, I'm probably being a bit severe there