Payoff house or reinvestment

[gtsticker]

Trying to decide between paying off my house or re-investing the money in more land and or investment property. I know Dave Ramsey would say pay it off. I am whitin 5-6 years of retirement and own land that I plan to build on when my wife retires. I will have a good pension and work after I retire from my current position. Just don’t know if that is the best investment long term. What are your thoughts?


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[Preacher Man]

Highly doubtful that the land will be available at the same price in 5-6 years. The rate of return due to normal appreciation likely won't outpace a good investment though.

[Codie]

May be some more details missing and definitely not enough details to be too terribly accurate in my opinion, but what is the point in paying off your house if you are just going to turn around and take out another mortgage to build a home in 5-6yrs? For that fact alone I would say invest the money now and continue paying the low interest rates that are available on the mortgage note for now.

[hooligan]

If you bought more land how long would it take you to pay off the house? What about a rental property in cash and using that money against your primary mortgage or to get more land?

[WyoBull]

Paid our house off several years ago and it was the best feeling ever. I don't really care about what the "financial" gurus might say about paying your house off early because they all have a different opinion depending on whether they are an accountant or financial planner.
I can sleep well at night knowing our home is paid off and if something happened catastrophic we would still have a roof over our head.

[Pedernal]

Paid our house off several years ago and it was the best feeling ever. I don't really care about what the "financial" gurus might say about paying your house off early because they all have a different opinion depending on whether they are an accountant or financial planner.
I can sleep well at night knowing our home is paid off and if something happened catastrophic we would still have a roof over our head.

^^This^^

[Throwin Darts]

I'd do whatever option had me debt free at retirement.

[flywise]

Seems to me once house is paid off that frees up money for investment.

[Walker]

What's your apr on the mortage. Might be cheap money if you keep it

[be12hunt]

Without knowing some key details I am making some big assumptions. Odds are you are on the good side of the amortization schedule on mortgage so you probably aren’t losing much in interest. If done right, I like the idea of buying another investment property that can bring you some passive income in retirement. The other side is if you have plenty of retirement money and don’t need the income then I would say do whatever makes you happiest. That might be buying more land or paying house off early.

[DirtyDave]

I wouldn't want to retire with ANY debt.
Paying off the house will free up the money your were paying monthly to invest in something that makes you interest rather than paying interest on debts.

[jerp]

Paid our house off several years ago and it was the best feeling ever. I don't really care about what the "financial" gurus might say about paying your house off early because they all have a different opinion depending on whether they are an accountant or financial planner.
I can sleep well at night knowing our home is paid off and if something happened catastrophic we would still have a roof over our head.

When it comes to paying off a mortgage there is definitely an emotional component that for many overrides the "just crunch the numbers/maximize leverage" financial strategy. For some, the peace of mind that comes with being out of debt and owning your home outright is the way to go even if it doesn't look on paper like the most profitable option. Nothing wrong with that IMO.

[bownut]

Seems to me once house is paid off that frees up money for investment.

^^^^^This

[huntnfish]

I still have about 19 years to retire so I am not in the same boat as you. My APR was 6% when I financed the house and I paid it off 2 weeks ago. It hurts to write a check like I did, but I THINK I made the right decision. I figured with the money I save in principle I could make payments on property. I would also have the house to sell outright to use for my retirement home. Don't listen to me though, I don't always make the best decisions.

[Hooverfb]

As long as you're comfortable with your future income, payoff the house and free up the cashflow if you want. If you're worried about the future income, buy more income (invest).