Do NOT Pay Off Your Mortgage…⛔️

Warning: do not pay off your mortgage, at least until you've watched this entire video and considered all the factors. Now, most people think that paying off their mortgage and fully owning their own home is the ultimate goal. You've maybe been sold that vision. But is it the case? Now, I remember this was probably 6 years ago. I have a small mortgage on my house, and mostly just for opportunity cost of cash and drawdownable safety. And, you know, my wife likes the ability for the flexibility. And I said to my business partner, there's no point having a mortgage on my house. I don't need it. I can afford to just pay it off, I'm gonna pay it off. And he said, do not pay off your mortgage. He told me outright not to pay off my mortgage. Now things have changed since then, and if you've been following me for a few years, you've seen me many times say do not pay off your mortgage for about 5 reasons, which I will share here now. Um, but as the market changes, I do like to update my position. So when interest rates were 0.25%, and if your mortgage rate is still under 3%, which many still are on old deals before the rates went up, do not pay off your mortgage. Okay, well, caveat: let's say you can hardly live, you, you're getting more and more into debt, and maybe a family member could help you relieve that pressure. Hmm, then maybe that's an extreme caveat. However, when inflation is more than interest, it costs you to not have your mortgage. Now, assuming that your mortgage is for your own home or it's for an investment property. So back in 2020 or before, when rates were 0.25% and inflation peaked at 10%, it could cost you on the equivalent money that you'd pay off 8 or 9% a year in real terms by paying off your mortgage. So anyone who has an old deal, give me a yes in the comments if you've got old mortgage deals on old low rates. Give me a yes in the comments if your mortgage interest is under 3%. If that's the case right now, then your mortgage is less than inflation and it will cost you more to pay it off. Now many people don't know this, But inflation is probably a quicker payer offer of your mortgage than your repayment mortgage. So I know they say inflation is 3.2%, but there's all sorts of things that they don't put in the basket of goods, and there's so many different measures of inflation. And, you know, your cost of living, which isn't just inflation, it's part of it, has definitely gone up more than 3.2%. And then you've got your interest rate that's gone up and up and up. So maybe your mortgage is costing you a lot more. Do you know interest rates are up 1,000%— 1,000%— since their lowest point? So in reality, each time that inflation goes up, yes, it reduces the value of your money, but it also reduces the value of your debt. So in an ideal world, what you want is the government paying off your mortgage for you. Um, the next thing you want to think about is the opportunity cost of the cash. So let's say you're thinking, well, my rates have gone up to 5 or 6, they're starting to pinch, thinking about paying my mortgage off. But what better deal could you do with the cash? Because you should be able to beat your current mortgage interest rate with an investment. So let's say your current mortgage interest rate is 6%, let's say. You should be able to beat that with an investment in property. So you pay off your mortgage and you save this 6% in interest, though you don't get the benefit of inflation paying off your mortgage, but you lose the opportunity to take the cash and put it into an asset and beat the 6%. Now here's the really smart move. Keep a mortgage on your property, especially if it's a relatively low interest rate. Take the capital you are going to pay the mortgage off with, invest in an investment property, have the income chip away at your mortgage payment. So you start to use assets from the capital to pay off your mortgage interest for you. So, um, I do this with cars all the time. I do this with my property. So if I want a new car— so I don't know if you've seen any of my lives, but I've got a Lamborghini Aventador, an Aston Martin DBS, a 1989 Porsche 911, 1987 Ferrari Testarossa, an Audi RS Q8. And each time I want— I'm looking to buy, um, like a limo car for all the driving that I'm doing. Um, and each time I want one of these new assets Um, instead of sinking tax-paid money into these, I either look at owning them in a business to offset all the expenses and the depreciation, but what I usually do is I buy an asset and then I have the income from the asset or the profit from the asset buy the car. So I've got a 1989 Porsche 911 Turbo, the 930 model, that was £125,000, and that was just profit on a payback of a deal I did about 5 years ago. We started a deal, we completed it, um, in the last year, something like this. And, you know, I lent it some money and I got the money paid back. I also made profit, uh, you know, from interest and income, and I used that profit to buy the Porsche 911 Turbo rather than cash or debt to buy that. And so really, I can have free cars— free, you know, they— I can essentially have them without paying for them out of cash and capital by owning assets. So I can see some of you are saying here that you're finding this useful and you want to learn how to do this. So I actually have an upcoming Zoom if you'd like to jump on this, where I'm going to talk to you about how to cash in on the property crash For example, I recently finished a deal. I say I, it's we, me and my business partner. And we bought it for £3.8 million. It peaked at nearly £21, it's just under £20 now. And that makes £1.2 million gross rent. And that's a very high margin on net profit, by the way. And that's 99 apartments. And so I'm actually going to show you why right now the opportunity is similar. Where you can cash in on the crash, where deals are now coming. Let me just share the link with you. So give me a yes in the comments if you'd like to jump, jump in on a Zoom that I'll subsidise for you. I'll give you a ticket to this because this isn't something I normally talk about. Where, you know, 5 years ago we bought a couple of big deals. I'm talking 164 tenants in one, 42 tenants in another, 125,000 square foot, 35,000 square foot. And, um, in the last sort of 3 years since we bought them and finished them off, we thought the market doesn't seem very good. COVID's pushed it up, it seems a bit sort of frothy and toppy and sticky, and nothing seems to be happening. And then in the last year, the market's dropped 20% in our area, interest rates have gone up a lot, rents are still going up a lot, and deals are flowing now. In fact, we just did a deal. We paid £750,000 for it a year ago without touching it or refurbing it or doing anything. One simple trick, you know, a bit of pushing and pulling and backing and forthing, but one simple trick took it from £750,000 to £1.1 million. And I rarely talk about this stuff because it's in the background of what I've been doing for 18 years, but my time is focused more on Training and education and writing on content. But I'm actually going to do a special Zoom. I'm going to bring in one of my special guests, um, he's going to tell you how he went from £140,000 in debt to a £16 million portfolio. We're going to talk about some things going on in the property market which are bad for first-time buyers but good for you and good for investors. Some games the banks are playing which you need to know. So if you'd like to know all of this, I'll subsidize you a place Um, if you just go to the link, um, tiny.cc/crashzoom, that's tiny.cc/crashzoom. Now, warning on this, no recordings, no replays. It's in about 3 days depending on when you're watching this, so go jump on this right now. I'm going to subsidize you a ticket. I'm going to talk about whether you should pay off your own home or not, the games that the banks are up to, the opportunities that are coming in from, you know, the perfect storm of pain for a first-time buyer but opportunity for a contrarian investor. Some people are saying about how everything is overpriced. Yeah, prices have been frothy and toppy, but they've dropped in a lot of areas. 20% in the last, what, 16, 17 months in my local area. So I'm seeing opportunity. I've not seen deals like this since 2008, and we know because we've just bought one a year ago and we're making offers on them at the moment. So quick summary then, before— after you've jumped on the Zoom, tiny.cc/crashzoom. Quick summary, um, do not pay off your mortgage on your own home if your mortgage interest is still lower than inflation, and I believe inflation, or at least your cost of living, is more than they tell you, or at least there's more goods in your basket that they're not measuring in current inflation. So I always just assume double. So if your mortgage is costing you less than about 7%, it's going to cost you less to, um, keep the mortgage because inflation's going to pay your mortgage down for you. Also, the big thing really is the opportunity cost of the cash. So someone said in here, you've got spare cash, pay off your mortgage. But what if you took that spare cash, invested it into an underpriced asset, which is happening now and it hasn't been for years, and then you've got income from that asset? Then that income could pay off your mortgage for you, and then you've got the asset for free. That's what I do with cars, and that's what I do with real estate, and you can learn how to do this. And anyone can do this. And let's say you're thinking, yeah, but I don't even have a deposit for a house. Well, then you need to learn how to raise finance, be an attractive investor, do joint ventures and low and no money down deals. And this is all going to be covered and introduced to you on this Crash Zoom, which is tiny.cc/crashzoom. Now I will put my hands up and say for years I was very adamant you shouldn't pay off your mortgage. That was when rates were 0.25%. And in fact, my business partner, who's, you know, quite, um, practical, analytical, tactical, paranoid, does a lot of due diligence and research, he said to me, do not pay off your mortgage when rates were low. Now they've gone up, but they're still under the long-term average. So in, in the long term, they're not as bad as you think they are. They just feel like they are because mortgage, um, interest has gone up 1,000%. So in many instances, you should be able to beat the current interest rate of your mortgage with your investment in an asset. And here's the thing: if you pay off your mortgage, well, one, you're going to have to make a big sacrifice to do that. Two, that's the only property you're ever going to own. But what if you could use that capital and buy one property every 2 or 3 years with it by recycling the cash? Because actually, if you buy well, if you buy low, and the prices are dropping now, so you can, or if you add value— so I'm at the moment, I bought a property for £750,000, um, which we now believe is worth £1.1 million on the deal we're just doing, um, on a small tweak. Now, we bought that a bit under value, but we also added value. So if you can buy a bit under value, which is finally possible now, and then add value and there's various different ways you can do this which we can show you, then you can get a double effect on your profit margin. And then what you can do every 2 to 3 years as the values go up is you can pull a deposit out and buy again. So you can cash recycle. We call this BRR, buy, refinance, remortgage. And then you could have another R, repeat. Another R, rent out. BRRRR, and just keep going. And so just with one deposit pot, you can either pay off your mortgage and own one house, or every 2 to 3 years you can have an investment property. And in 10 years, your mortgage could have been completely paid off, not by you but by your assets. And then you can own cars with your assets, which I've been showing people how to do recently too. So just need to observe the masses and do the opposite. You need to be fearful when others are greedy and greedy when others are fearful. And yeah, the banks know this. Um, Lloyds want to be the biggest private landlord in the UK. Um, Vanguard and BlackRock are buying up loads of American real estate, literally towns and cities worth. So you want to know what the banks are doing, because when the banks are going all in on property, it's time to go all in on property. So, um, join this Zoom if you want to learn how to do this. Start even if you've got relatively low funds. Um, if you want to know how to create leverage to earn on the bank's money, raise money to buy property, cash in on the crash, know what's going on in, you know, the dropping of the market, the increasing of the rents, what's happening with interest rates, what's happening with supply, and what the opportunity is, and what professional investors are doing to cash in on the crash. Because I've not seen opportunities like this since 2008. And, um, you know, that was my 2008 and 9 were my best years in property in terms of, you know, value, you know, buying low, renting high. And I'm seeing the same signs again. I've been waiting a long time for this. So if you've been waiting to make money, finally now maybe is your chance. So go to tiny.cc/crashzoom. That's tiny.cc /crashzoom. By the way, this is coming up in 2 or 3 days, no replays, um, so jump on and I'll see you there. And I'm going to subsidize the place. I'm going to do the first 15 minutes of intro and tell you some of the changes in the market and the opportunities. There's going to be an extended Q&A for you. I'm going to bring in a special guest expert who went from £140 grand in debt to a £16 million portfolio, and he specializes in raising cash other people's money, and no money down deals. So we're going to tick off most of the boxes for you to start and scale a property business and maybe cash in on the crash and become one of those millionaires that happen in recessions and depressions, which is coming right now and soon to a city near you. See you on the Zoom. Thanks for tuning in. Joshua said, LOL, don't pay off your mortgage. What the fuck? Maybe you need to watch the recording of this, Josh. Yeah, um, it's, it's not smart many ways. I mean, if inflation is 1 and interest is 10, pay down your mortgage. If it's the opposite, absolutely do not pay down your mortgage. If you can beat your interest rate on your mortgage in a return on investment on an asset, use the money for an asset, not to pay off your mortgage. But most people don't know this stuff because you've been indoctrinated to say work hard, be a slave for 25 or 30 or 40 or 50 years and finally pay off your mortgage one day and finally retire one day and then, by the way, die with a house. Why do the banks want you to pay off your mortgage? Because the banks and governments are in cohorts, so then they can charge you inheritance tax on it. Maybe they've got their ulterior motives. Anyway, if you find some of what I've said interesting, or you agree with anything I've said, or you want to share this opportunity, Please hit the share button because not enough people are talking out about this stuff because they're scared of what the banks might do to them, scared of being canceled. Also, they just don't know this because I became a millionaire age 31, or just before, a deca-millionaire— that's 10 million net— um, before age 35. And that was a long time ago. I've been doing this nearly 20 years. Thanks for tuning in. I'll see you on the Zoom, tiny.cc/crashzoom. And remember, if you don't risk anything, you risk everything.