Why do normies get so angry and defend mortgages when you suggest buying for cash?

[Anonymous No.57263089]

I've noticed that whenever someone mentions purchasing anything cash, a home, a car, etc. you'll always get redditor normies trying to justify why being in debt and giving free money to banks is actually good.

[Anonymous No.57263108]

>>57263089
Good debt is how you get ahead
Well, maybe not you but me.

[Anonymous No.57263127]

It's a leveraged position in the housing market. What's your argument?

[Anonymous No.57263130]

>>57263089
>you must be enslaved to a loan for 30 years like the rest of us!

[Anonymous No.57263151]

>>57263127
>>57263108
Rates are high so taking out a mortgage right now isn't as savvy as it was three years ago. Cash makes sense if you can afford it.

[Anonymous No.57263173]

>>57263089
because everyone lives off middle class and inflation, loans, socialism, gibs etc is product of middle class money getting inflated, poorfags dont actually produce any value, theyre all negative net worth, drain on the system, a cuck to jewish CEO that can threaten them with firing, which will make them fail to pay off their loans, perfect goycattle

[Anonymous No.57263186]

>>57263151
Spending more on something is obviously a less "savvy" move than when it was cheaper. That's redundant. Arguing whether cash makes sense is just a matter of arguing where you think the housing market is going compared to other investment opportunities.
Unless you're gonna break the math down on both, you're not actually saying anything here.

[Anonymous No.57263194]

>>57263089
they believe that borrowed money "isnt theirs" because they heard it somewhere. not even kidding

[Anonymous No.57263211]

>>57263130
My interest payments make my taxable income less. There is no looming debt doom I feel. I need the mortgage. The government subsidizes the market. It's free money.

[Anonymous No.57263253]

Most redditors have never seen anything resemble a tough job or real estate market. They coast on the theory that they will calmly sell $3000-5000 worth of stock every month if they are laid off and not be panicking as the world around them falls apart.

[Anonymous No.57263269]

>>57263211
>My interest payments make my taxable income less. There is no looming debt doom I feel. I need the mortgage. The government subsidizes the market. It's free money.

[Anonymous No.57263284]

>>57263211
unless you have a ton of mortgage interest, I can't see how the standard deduction wouldn't be more.

[Anonymous No.57263303]

In a non-corrupt economy with sound money the only kind of debt that might be desirable is debt for the purpose of purchasing capital goods. Debt for speculation in real estate, crypto, gold and silver, and most stocks is only profitable in a corrupt and fundamentally unsustainable economy. And the day ALWAYS comes when the bottom drops out.

[Anonymous No.57263322]

>>57263269
cope
>>57263284
you're actually right, it's about the same right now, but only because my rate is so low and I'm already in huge profit. The front loaded interest payments were awesome for the first 5 years to massively reduce income tax. The refi during COVID brought it down to about equivalent after another 4 years.
Time for a bigger house. This one only doubled from 500 to 1M. Actual cost of original loan was ~700k over 30.

[Anonymous No.57263375]

>>57263173
>poorfags dont actually produce any value
Try feeding and clothing yourself next month

[Anonymous No.57263384]

>>57263089
Debt slaves defend their shackles.

[Anonymous No.57263410]

>>57263089
My mortgage costs me 6% and my costs are claimable on tax. The money I have control over earns me around 23% a year (Shares, rental, crypto, business etc)

By taking the mortgage I pay 6% interest to earn 23% on each dollar, and even my liquid cash holdings "earn" me 6% in an offset account for virtually 0 risk, giving me yield on dry powder

[Anonymous No.57263466]

>>57263410
>implying the average debtslave makes anywhere near 23% or even has a sizable amount of money invested at all

You're the exception, not the rule.

[Anonymous No.57263526]

>>57263466
Rules are for the normies

[Anonymous No.57263568]

because reddit is propaganda for cattle. banks, companies, politicians all astroturf you.

[Anonymous No.57263573]

JEWISH USURY MUST BE PROTECTED AT ALL COSTS

[Anonymous No.57263642]

>>57263089
Yeah. Jews can also create as many Twitter accounts as they want and say what they want. It is not illegal to lie.

[Anonymous No.57263653]

IF YOU HAVE A MORTAGE, YOU ARE GIVING MONEY TO THE JEWS

[Anonymous No.57263803]

>>57263151
Even if you can “afford” cash, mortgage rates are like 6.5% right now for 15 year fixed (which, if you can pay cash, you can easily manage)
S&P500 makes about 12% a year on average over a 15 year period.
So let’s take the example of a $100k house to keep it simple
You can pay for it outright but the opportunity cost is not investing the $100k
Scenario 1: you pay cash. After 15 years you have the house plus whatever it appreciated
Scenario 2: you take out a 15 year fixed mortgage at 6.7% (which is high even now and means you have a mediocre credit score). After 15 years you will have paid $158940, which is $58k more than in scenario 1, but if you invested the $100k in the S&P500 and it continues to follow historic trends and you reinvested dividends, your investment will be worth $442,900.
So on top of the house plus it’s appreciation, you will have ~$300k (before taxes) in cash, even after you take away the interest you paid for the mortgage

[Anonymous No.57263842]

>>57263410
You’re right
>>57263466
It doesn’t matter. Every penny you can take for a good mortgage is “good debt”
We’re not talking credit card debt here anymore which is “bad debt”
As if mortgages weren’t appealing enough, you can also take a fucking tax credit if it’s your first home.

[Anonymous No.57263856]

>>57263089
>mfw fuck the banks and pay cash even if it is a loose

[Anonymous No.57263865]

>>57263642
If it was all of ((them)) would be in prison. in camps, even.

[Anonymous No.57263927]

>>57263130
Hi saltpumpkin3, lets go see what other posts you have made.

[Anonymous No.57263954]

Mortgage is the only way 90% of normies can realistically expect to own a home. Buying a house with cash just isn't feasible for most unless you live in a low COL part of the country and/or have an above average income.

Plus you got to live somewhere and pay for housing regardless. Even though a lot of it goes to the bank as interest, you're also at least building equity with a mortgage. Mortgage is about the only type of debt that's acceptable. Just be sure to make extra payments and pay it off early, being in debt for 30 years is pantsu-on-head retarded.

[Anonymous No.57263982]

>>57263089
>NOOOOO! Do not buy and own your assets!
>Throw your money into stock market to fuel infinite growth!!
>((Everybody)) knows it grows at 10% average!!!
>Stay in debt for the rest of your life, that's what "smart" people do
No thanks, I will own my land and home.

I have seen too many people lose it all when it seemed like they were on top with multiple properties and good protfolio.

[Anonymous No.57264048]

>>57263089
imagine using the rating system on a liberal brainwashing playground

[Anonymous No.57264100]

I inherited my house, so I dont know how oaying rent feels or what having a morgage is supossed to be managed, this is how rich people who are born into money feel? Like you dont quite grasp how big of an advantage your condition is because is the only way of living you know
I dont know, the idea of having to pay a brutal abusive loan for 30 fucking years sounds like absolute torment

[Anonymous No.57264159]

>>57263089
Based on your visible votes in the screenshot, you're obviously a retard that doesn't understand the benefits of a mortgage.

[Anonymous No.57264444]

>>57263375
> Try feeding and clothing yourself next month
Try not having me feed and clothe you.

[Anonymous No.57264461]

>>57263089
They're often seething with jealousy at the idea of someone who doesn't take high risk, leveraged positions having the cash on hand to buy large assets. The idea that you're probably just going to set yourself up and sit back and enjoy an easier life instead of pushing for the next bigger thing challenges their values to boot. Like that you might have an interesting enough inner world to retire into it once everything's stable lets them know that their somehow less.

[Anonymous No.57264834]

>>57263089
Normies are the ultimate consumer cattlechud. They get irrationally upset if you don't take out debt. Three months ago at work my coworkers were talking about credit card debt and asked me if I had any. I said no, I pay it off every month. They then got an attitude with me. I drive a 2012 car while they have nice new financed cars, I also don't have a mortgage anymore.

That same retard that asked me about credit card debt was freaking out a month or so ago when that direct deposit glitch happened nationwide and his check was delayed. He literally didn't have enough money in his account to cover his upcoming mortgage payment. We make over six figures, I still cannot fathom how he's living paycheck to paycheck when he makes the same that I do.

I get the principle of why people say mortgages can be good debt, but normies rarely if ever use it in a good way. How many normies actually get wealthy from leveraging their mortgage and investing in other assets? Very few, I'd imagine.

The psychological benefit of paying off my mortgage earlier was worth far more to me than anything else. I'm in such a good place now. I'm in my late thirties and can literally pay my expenses for 15 years, 20 if I really went cheap. I save so much and can invest way more money now than when I had a monthly mortgage payment. There were layoffs in my field(other companies, but not a good sign) and everyone at work was freaking out that they were going to get laid off. I couldn't care less. It would be annoying finding another job but I'm in zero danger. That alone is worth it to me.

[Anonymous No.57265223]

>>57263089
Because if you take out the mortgage and invest the rest of your money into S&P500 funds after 30 years you will have paid the cumulative 5% interest on the principal or whatever but your portfolio will have grown like 300% while throwing out dividends all along the way to offset the interest repayments. This is a shitty thread OP.

[Anonymous No.57265252]

>>57264444
Checked and capitalistpilled

[Anonymous No.57265255]

>>57265223
If you don't have a monthly mortgage you can save and invest more. Mortgagecucks always use this retarded argument to justify being a debt ridden dipshit and give free money to banks. The average normie mortgagecuck can barely save $500 a month, much less invest it. Dumb mortgagecuck lmao

[Anonymous No.57265341]

>>57265223

>implying Normie's do that
>implying Normie's stay in their home the full 30 years
>implying normies even know that the first 15 years of a mortgage is mostly interest.

You are a /biz/ autist. The Normie's don't think like us.

[Anonymous No.57265395]

>>57264444
Yeeessss do it, stop producing.

[Anonymous No.57265424]

>>57263803
>S&P500 makes about 12% a year on average over a 15 year period.

captcha gaay4d

[Anonymous No.57265490]

>>57265255
>>57265341
This desu. All the arguments for why mortgages are somehow better assume that your average retard is financially literate. Most normies just go into more debt and are literally enslaved and forced to work because of it.
>>57264834
I know people just like this. It's insane and seems like a very stressful life.

[Anonymous No.57265675]

I dont even get the point of this question. So assuming you have enough cash to buy a house, would you opt to take out a loan instead to have debt and retain your cash to presumably create more profit than the debt interest?

A different question: If you you just had enough money for a principal to get a mortgage and someone would loan you the exact same amount with the same interest rates, would you take it to invest the loan into something in hopes to turn your 350k loan into a profit?

[Anonymous No.57265820]

>>57265675
I think with bank loans the money isn't actually handed to you, the bank has just paid for most of the cost of your house and it shows up as a debit balance on your bank account.

[Anonymous No.57265859]

>be /biz/
>be pro crypto
>be against borrowing funny money to buy hard money
Not a very high IQ thread here. Debtmaxx is the only way to buy something actually valuable, only then do you have anything worth not losing to a lien

[Anonymous No.57265880]

>>57263127
No sane person would advise such a large, undiversified investment, not even in a particular sector, let alone a single property.

[Anonymous No.57265917]

>>57263151
>Cash makes sense if you can afford it.
Of course, with rates where they are now. But even if you start a mortgage now, you can always refinance if and when rates are lower in the future.

The other major part of this equation is inflation. When you have long term fixed debt (like a 30-year mortgage) real yield becomes less important than nominal yield. If you don't have debt, then when you make (say) 10% in a year off of your investments, but inflation was 3%, you've only grown by 7% relative to the cost of the home you're looking to purchase. Which is to say, the cost of your home is increasing at the same time as your investments, so you have to "outpace" that cost appreciation for it to be worth it. Contrast this with having a mortgage: the amount you'll pay over those 30 years is now locked in, so if you make 10% off of your other investments, all of that 10% goes towards meeting that fixed cost instead of getting cut to 7%.

[Anonymous No.57266031]

>>57263127
It's dumb as fuck, that's the argument.

[Anonymous No.57266097]

>>57264444
Wasted quads. Social spending acts as a supply side labor subsidy, reducing the market rate of wages, while the monetary expansion that pays for social spending pumps assets

[Anonymous No.57266223]

>>57263089
Because "get things now" feels good and most people don't reason and instead come up with elaborate post-hoc justifications for doing the shit their lizard brain wanted to do

[Anonymous No.57267046]

>>57263089
Home prices will crash eventually. There are a few economists doing on the ground research and finding a lot of home sales and construction are not being accounted for in the published numbers.

[Anonymous No.57267248]

>>57263089
Anyone business-savy would be able to take that 300k-1million they would have dropped on a house and turned that into a highly successful business that would more than pay the extra debt
Plus if you make an extra payment per year you save a shit ton on interest since the extra money goes to principle only and you can finish the loan 4-6 years sooner

[Anonymous No.57267266]

>>57267046
No, see: >>57266031. Houses are cheap, you're just a poor wagie slavemind that's allowed your real terms income to drill through the mantle

[Anonymous No.57267743]

>>57263089
The interest rate on my home is 2.75% over 30 years. Even if I ignore any income from investments, and simply assume a bare 3% COL adjustment to current wages, why would I want to pay down that debt with my current cash flow? Got a bunch of dave ramsey boomers in here.

[Anonymous No.57267768]

>>57263089
Homes always go up so if you can only afford a home with a loan you better take it or you just won't ever have a home.

[Anonymous No.57267770]

>>57263982
You’re still paying property tax to the government goy, you don’t own shit.