What is better: to invest the money or pay out the mortgage?

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Services for Real Estate Pros with Belbel

What is better: to invest the money or pay out the mortgage?

This question is a difficult one and it largely depends on the full financial environment. You have to take into account not only your profit. Before taking the final decision, ask yourself and answer the following questions:

-         How much current savings do you have?

-         Do you have any retirement savings?

-         How much do you need for everyday life?

-         Are you going to move or change a place of work?

-         Do you have money for some unexpected challenges?

If you invest the cash, the tax advantage is kept, liquidity is kept, and you can pay down the mortgage if you need later. But if you pay off your mortgage, you’ll stay without money and probably you won’t have chance to get cash again. 

“Cash is king”, in case of need having cash is much better than having more equity in their real estate property.

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