Do Not Pay Down Your Mortgage ⛔️

Warning, right now I do not believe it's a good financial decision to pay down or pay off your mortgage. Now, I think the goal of the working and the middle class is to pay off your mortgage so you have no monthly mortgage payments, so you have a lower cost and you maybe have more disposable income. But did you know that at the moment there's a better way to pay down your mortgage? Do you know what that is? Let me know in the comments if you know what a better way to pay down your mortgage is than you paying down your mortgage. I might give a shout out to the first person who gets it right. Now, you've probably been watching my videos and hear me ranting about the government and the really high inflation, the soaring costs of living, um, and, you know, fuel, food, energy, etc., going wild. But do you know there's a really big upside benefit to high inflation? Michael has said get someone else to pay your mortgage off. I love your style, Michael, but this is not what I'm thinking. The big upside of inflation is that whilst it will erode the value of your cash, it will also erode the value of your debt. So if you pay down your mortgage, you are taking capital that you could invest in Capital that could be put into an asset that produces income, and therefore there is a cost of that capital. So people think, oh, I'll pay down my mortgage, but they might put 5 grand, 10 grand, 20 grand down. They might overpay, but that 5, 10, or 20 grand could have produced a 5 or 10% return. That 5, 10, or 20 grand could have been put into an asset that produces hundreds of pounds a month in income. But here's the thing, and you know what, I've got to give credit where credit's due, or at least I've got to be balanced. The government right now are doing you a favour because they are paying your mortgage down for you. They are paying your loans down for you, and I'm going to talk about that more in a moment. But Lucas said sell your property. Careful, careful, because if you sell your property, your property may have gone up roughly at the value of inflation, but you have— you may have stored a massive capital gain. So if you sell your property, you may have a retrospective capital tax bill that you didn't expect. So you've got to be really careful about that. Now you might have some primary residence tax relief, so check that out too. But here's the thing, I don't like selling property. I hate it. I was buying properties for £70,000 in the last recession that are now worth £200,000 or more. Why would I sell that? Do you know, I've usually regretted selling any asset. And you'll— when you sell, you've got selling costs, estate agency fees. When you buy a new house, you've got stamp duty taxes. And you've got taxes for selling property. So actually 20, 25, 30% of the value of the asset might get wiped off. And by the way, every 10 years that property's probably doubled in value, and so when you sell it, you're selling the benefit and the gain to someone else. So here's the thing, don't— inflation is paying down your mortgage. Do not pay down your mortgage right now. Now look, if interest rates are high and inflation is low, it may be worth paying down your mortgage to get the, the costs down of the loan if it's a variable mortgage. If it's fixed, it's not going to make any difference. But right now, with inflation at 10 to 15%, any loans you have— and I'm only talking good debt loans here, not credit cards— but any loans you have, the government are paying it off for you. So I have around about £25 million, $30 million worth of mortgages roughly right now. So I'm in a lot of debt, but by the way, that's on a roughly $50 million plus, um, dollar portfolio, maybe a little bit more. So let's just make the numbers round. £25 million, um, pound mortgage, um, 15% inflation. It's not 9%, it's not 10%, 15% inflation. What is 15% of £25 million? £3.75 million a year. The government are paying my mortgage off for me. Thanks, Rishi. Thanks, Boris. Cheers. Now, this changes over time, of course. So when it reverses— when rates are low and inflation is high, inflation is paying off your loan. And when rates are high and inflation is low, then obviously the interest rates are going to be higher on your lending. So what you should do therefore at the moment, I believe, don't pay your mortgage down. In fact, you want to have a fairly decent amount of good debt. Don't over-leverage, definitely don't go over 70%, you might want to be at 60%. But if you take out good debt loans on properties, on assets, and you have the tenant paying off the mortgage and there's some income left for you to take, The government, with increasing inflation and quantitative easing and having to pay off all their debts and doing that by debasing the currency, are also debasing your loans and debt, and they're paying your mortgage off for you. Boom! Thanks, Rishi and Boris. So with that, if you have got some spare capital, you got a redundancy, you retired, you got a pension, um, you've just got a bit of capital in profits, don't pay your mortgages and your good debt loans down right now. Obviously, if you've got loans at 25% interest that are bad debt, you want to chip them down as soon as possible. But good debt is different to bad debt. So what you want to do is take that capital instead of paying down the mortgage, because inflation will pay it down for you over time. By the way, even if inflation is only 5%, if you have a 25-year mortgage, 5% a year over 25 years, 80% of that loan is going to be eaten by inflation. So that is good. So let's say you bought a property for £200 grand. In 10 years, it's probably £400 grand. Let's say you had a £150,000 mortgage on it. 10 years at 5% inflation, that's going to be roughly halved. So your mortgage is going to roughly halve, but the value of your property is going to roughly double. And compound that by another 10 years. So inflation is a powerful payer down of debt, but it's also a powerful eroder of cash. So this is why I've been saying cash is trash. You've got to get cash out of the banks. Don't save your way to wealth because it's impossible. Invest your way to wealth. Don't sell your assets. Why would people sell the asset? Because they want to get some emergency cash. Well, you could maybe refinance the asset. You know all these billionaires that people say, "Oh, these billionaires, they're not paying any taxes." Well, they are, but what they're doing is instead of drawing millions or billions in income, which produces income tax, they're essentially loaning against the money that they have, and they're creating good debt, and they're using good debt to draw money down, and then they're letting inflation and the governments pay down the good debt. You can't blame them for that. They're just smart. They've just learned to manage and master money. They've got better financial education and knowledge. So you can, you see here, if you've got good financial education and knowledge, if you're smart with money, if you know what inflation and interest rates really do, that you can actually make a huge difference in your wealth. You cannot save your way to wealth. You can only invest your way to wealth. Inflation kills cash but also kills debt. So any excess capital you've got right now, invest into an asset so that the asset protects the cash from devaluation and inflation. Then the asset will go up in time, capital appreciation. If you leverage good debt on that asset, then inflation, you're double winning here because inflation is paying down your loan but you're protecting your cash from inflation. Whereas the masses don't have good debt so they're not having inflation pay that down and they have some cash and savings which is getting eaten and killed by inflation. So let me know what you think in the comments, but right now— and this could change in a year or two or three— but right now you should not be paying your mortgages down. You should be hoping that inflation is going up and wiping off the value of your mortgages. Because by the way, when inflation goes up, asset prices usually go up. Asset prices usually go up when inflation goes up. So we've got asset price inflation, which is essentially capital appreciation, We've got inflation eroding the value of your debt, relatively speaking. So you get a double win there. Is that Bobby in my glasses? That's Bobby there. I'm almost done. He wants me to play some cricket with him. So if you'd like a better financial education and knowledge, if you'd like to learn stuff like this on a weekly basis, if you'd like to learn how to invest, protect capital, get capital growth, have multiple streams of income, I invite you to join Rob.team. Rob.team is what I believe to be a better financial resource and education platform than schools and universities. The reason being that schools and universities do not teach you about money, and the people that are teaching you about business or finance or economics are broke. They're not millionaires. They're probably earning 50 grand a year. You wouldn't go, for example, to a personal trainer who's just had a triple heart bypass and is 50 kilos overweight. Yet the masses are learning about money from people who are broke. It's completely wrong. So if you join Rob.team, you can get better financial education and knowledge, start and scale your business, create multiple streams of recurring income, digital assets, learn how to protect your cash from inflation, leverage good debt. You're going to learn all this stuff and it's going to cost you literally less than a large Starbucks coffee a month. So if you— how to join, here's what you do. You open the new page right now. Do it with me right now. Open a new page and type in rob.team. Do it now. If you learned something from this video and it challenged your thinking, rob.team can do that for you every day or every week. Open a new page right now. Type in rob.team. Join for the cost of a large coffee. That's it. You can cancel anytime. Now some of you are a bit confused or your brain's a bit sort of twisted by what I've taught you here. So in the Rob.team platform is the brand new 9-module, 10-hour How to Invest series. This series will help you learn how to invest, leverage good debt, master inflation, because on the wrong side of inflation it kills your cash, on the right side of inflation it pays your debt down for you. You'll learn what asset classes are good right now. You'll learn how to create diversity. You'll learn how to invest wisely, protect yourself. You'll learn how to invest with low or no money down. So if you go now and open a page, do it now with me, and type in rob.team, You can gain access to this 9-module, 10-hour How to Invest series. This would be a $1,000 course because all my day— all my courses are $1,000 a day plus that. But you can gain access to this for literally the cost of a large coffee. That's it. You can cancel anytime. 21 Ways to Monetize Social Media Masterclass is in there, a 6-hour online course. I've just interviewed my accountant, my secret accountant. I've had him for 12 years. He saved me millions in taxes. Capital allowances, and different company structures. You're gonna love this, very detailed and technical. That's going to be in next week in rob.team. So if you want better financial education and knowledge, you want to maximize your profits, maximize your income, make sure that you protect yourself from the government, from inflation, from all the craziness that's going on in the world, open up a new page right now, do it, new window, and just type in rob.team. I'll see you there. You've got to get yourself educated. It's really important. So I know some of you have not agreed with me here, and that's okay. Everyone is entitled to my opinion. No, I'm only kidding. Let's have a discussion about it. I know this isn't conventional wisdom, but conventional wisdom is for conventional people, and conventional people are broke. The millionaires and billionaires observe the masses do the opposite. Casey has said when your mortgage payment doubles— how does your mortgage payment double if you've got a fixed interest rate? How does your mortgage payment double when interest rates are 1%? That's impossible. So you can fix mortgages right now if you're worried about the increase in interest rates, you know, because this is going to happen. Casey has said there, sell, sell, sell. I mean, that's just not good advice. If you sell, you you've got sales cost of 10% probably, you've got a stored capital gain probably, it could be going back a long while. So you're probably not going to be left with much. And then when that property doubles in value in 10 years like they have in the UK since 1952, someone else is going to have doubled their money. And in 10 or 20 years you're going to look back and go, why didn't I keep that property? You know, many of, I know people who paid $15,000 for properties that are worth $400,000 and $500,000 now. I've paid £70,000 for properties that are worth £200,000. I know properties in my area that were worth £500,000 that are now £1.5 million 10 to 15 years later. Some of you said you're struggling to join rob.team. If you have an issue with the link, you can also type in robmoore.com/team. Let me say that again. If you're having issues with the link, rob.team, You can also type in robmoore.com/team. Let me say that again, robmoore.com/team. If you're just having issues, I know some people are having issues joining with the link rob.team. I think there might be a server issue depending on where you are. Some of you are saying the link's not working. The— there's another link, it's the same page. You could join rob.team for the cost of a large coffee, cancel any month. Anytime. And that link is robmoore.com/team. It's the same link, it's just a different link to the same page. So would you like to start a business, scale a business, get better financial education and knowledge, learn how to leverage inflation, master good debt and not get into bad debt, build digital assets, create financial freedom, get better financial education and knowledge? If you would go and join rob.team right now. And the link, if you're struggling with rob.team, is robmoore.com/team. Can see Zoe's in. I can see many of you are in. Um, the kid must be so bored. No, Bobby's bowling at the stumps. That's what he wants to do. What are you, Parent of the Year? He's right there. Um, so yeah, yeah, if you've got equity and you can get loans that are significantly lower in interest than they are in inflation, then you can leverage good debt, have inflation pay down good debt, and use good debt to build assets. By the way, this is what the biggest companies in the world do that the masses don't know. And my 9-module, 10-hour How to Invest series It's going to teach you how to leverage good debt, how to invest, how to protect your cash, how to build your portfolio of assets to create multiple streams of recurring income. And the way that you do that is to join robmoore.com/team. That's robmoore.com/team in case the rob.team link isn't working for you. Bobby, have you got anything else you want to say before we go bowling? Yeah, bowling at the stumps. No, you're all good. Um, if you don't risk anything, you risk everything. Oh, if you don't risk anything, you risk everything. So, um, paying down your mortgage I think could be a bad thing right now, um, because inflation is 10 to 15%, and so your good debt mortgages are being paid down relatively 10 to 15% a year in terms of spending power. So, um, let inflation pay down your good debt. Leverage good debt to create assets that have capital appreciation, because with high inflation, debt is paid down, but with high inflation, asset prices usually go up. So I've been moaning about inflation if you save cash, but actually when it comes to building assets, inflation is your friend because you leverage bad debt, you pay down your mortgages thanks to inflation, and you get asset price increase thanks to inflation. So I hope you found this useful. If you disagree with me, then let me know in the comments what you think. But instead of saying things like terrible advice like Aaron has said, why don't you give me what you think to be the case? And Aaron, let me know how many millions you're worth. And, um, yeah, Hater Bobby has just said I don't think he's a hater, he's just disagreeing with me. But I expect most people to not know this because most people are broke. Um, and I did explain it in the video in a bit of detail. So, um, yeah, thanks for tuning in. If you don't risk anything, you risk everything. Hit the share button because I think a lot of people, um, paying down their mortgages are not getting the best return on capital. Um, they're actually eroding their capital and they don't know about it. And they're not allowing good debt leverage, and they're not allowing inflation to pay down their good debt. So, I mean, if you think about it, isn't it wise to get the best return on money? Like, don't you want to get the best return on your investment, the best return on your capital? Well, right now, cash is one of the lowest returns. Well, obviously, if you put money into a crypto and it went to zero, that's the worst return. But cash is being eroded by inflation at 10 to 15% a year. So that's minus 10 to 15% a year. That's a pretty bad return. But if you put cash to pay down a mortgage, that stops inflation paying it down 10 to 15% a year. So you're essentially getting a net less than 0% return. But if you put that cash into an asset, you could get a 5 to 10% return on capital. And if you leverage good debt, you could get a 25 to 30% return on capital. Have a think about that. Let's have a chat in the comments. If you've got questions or you want to challenge me, hit me up in the comments. But remember, the 9-module, 10-hour How to Invest series is now live in rob.team. You can join for the cost of a large coffee. You can cancel any time. By going to robmoore.com/team. Robmoore.com/team. Do you think people should join robmoore.com/team, Bobby? Yeah. What are you doing? Thanks, Rob. Good spelling. You have been very patient, haven't you, Bobby? Yeah. Should we go and do some bowling in the nets? Should we go and do some bowling in the nets? All right, thanks for tuning in. Hit the share button. I'll see you in robmoore.com/team for startup entrepreneurs, for scale-up entrepreneurs, for people who want to get better financial education and knowledge, have their thought process challenged, get a better return on investment, build digital assets, create passive recurring and residual income. Get my 9-module, 10-hour How to Invest series. Get my 21 Ways to Monetise Social Media. Hear from my secret accountant who's made me millions in taxes. It's all there in rob.team. Um, Casey has said, I can't find any information that backs up your theory about inflation paying off debt. Is it not just common sense? If you have a mortgage that's £100,000 and inflation is 10%, the value of that mortgage has gone down relatively to £90,000. Just like if you have cash of £100,000 and there's inflation, it's eroded the relative value of that to £90,000. It's the same. Inflation does the same to debt as it does to cash. I would have thought that that's just common sense. Here's the thing, it's not common sense. That's why I'm talking about it, because the masses don't know it. Ah, something to think about. I like challenging your thought process, by the way. A caller said, doesn't that only work if your wages go up? I don't think it has anything to do with wages, but Callum, glad you raised wages. You need your wages to go up 10 to 15% so you've got the same spending power as you had last year. That's not going to happen. That's why you need assets. That's why you need multiple streams of recurring income, digital assets, and investments. So I've got to go. Bobby really does want to have a bowl now. So go and join Rob.team, robmoore.com/team. I'll see you in the platform. Follow on social media. And what's the sign-out quote? If you don't risk anything, you risk everything. Boom! Thanks for tuning in. Let's chat. Hit me up in the comments. This one looks like it's going to spark some debate.