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Old 09-02-2016, 09:16 AM   #33
Leondros
Powerplay Quarterback
 
Join Date: Mar 2011
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Quote:
Originally Posted by Mr.Coffee View Post
agree and disagree with parts of this but again you presume that the 8% is guaranteed in your analysis in the market investment. It's not a fair comparison because 8% is not guaranteed. The return on the mortgage payout is risk free.

I don't think your analysis adequately considers risk.
I completely agree - that was not the point I was trying to make however. All I was trying to say is that an analysis on whether to pay off your mortgage has to look at the value of your home.

Unfortunately from a risk standpoint and what we are seeing in Calgary is people's portfolios largely consist of oil and gas companies as this is what this city knows. This results in a far too heavily weighted oil and gas portfolio coupled with Calgary home prices being directly tied to the health of the same industry. This is where people are finding themselves in big trouble as their job, investments and house were all attached to the same underlying commodity (no diversification whatsoever).
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