Originally Posted by
NuGuy
This whole argument reminds me of 2006, where every single person I flew with told me I was the stupest person on earth that I didn't cash out my fully paid for home (with the mortgage firm they were shilling, of course) and immediately invest the proceeds into the market.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
The S&P returned 462% since 2006 or 9.88% compounded annually. It would have been a winning trade given that mortgages over that period ranged from 3-7%.
An even better play would have been gradually rolling the market position into RE over that period. A hypothetical pilot could have acquired one property per year over the decade from 2006-2015 and built a portfolio of income producing property that exceeds their Delta income. My only regret is that I didn't fall victim to the scam in a bigger way.
