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Topic: Bitcoin vs Mortgage - page 2. (Read 2081 times)

legendary
Activity: 1344
Merit: 1547
The first decentralized crypto betting platform
September 23, 2017, 04:37:45 AM
#42
Nobody has talked about tax exemption here, so I suppose it’s not that common in other countries. In my country, most people who have a mortgage get a 15% discount on income tax, up to an annual limit, so many investors who could redeem their mortgages just pay back up to a certain amount annually in order to get tax deductions.

I think this is very important and if this happens in your country you should make your numbers because that % return you are getting on your money is risk free.
newbie
Activity: 5
Merit: 0
September 23, 2017, 01:36:53 AM
#41
Let me put in a other way, sometimes people  will preceive it wrong when they sell something. 

Will you take out a mortgage on your house to buy bitcoins?
If the answer is yes, then don't sell your coins, otherwise you should consider selling it. 

Note:  Shorting equity in a house is dual(opposite) transaction of paying off a loan, so the calculations should be in theory should be the same.  A human bring is a strange thing, and the notion of buying and selling affects it.   
hero member
Activity: 1274
Merit: 516
September 22, 2017, 11:06:15 PM
#40
If your debt is only 20% of your debt then just pay it, it is not good to have a debt, I know if you hold longer then maybe you can spend less than 20% to clear your debt, but bitcoin price is up and down, so you only can speculative about it, just pay it and then focus on other things
legendary
Activity: 1652
Merit: 1265
September 22, 2017, 03:58:39 PM
#39
If it was much more of your stack, like 60% or above then I would hesitate to do so. But if it's only 20% of your stash then why not? What have you got to lose? If BTC goes to moon you still have a load left, yet if it doesn't/or takes longer than expected, then at least your mortgage is paid off.

Remember getting your mortgage paid off is a distant dream for many, it's a nice goal and if 20% of my stack would do it, I would do it in an instant.

Very wise words....

I'm selling if I can buy a house for half my stack Cheesy
hero member
Activity: 594
Merit: 506
September 22, 2017, 03:50:38 PM
#38
If it was much more of your stack, like 60% or above then I would hesitate to do so. But if it's only 20% of your stash then why not? What have you got to lose? If BTC goes to moon you still have a load left, yet if it doesn't/or takes longer than expected, then at least your mortgage is paid off.

Remember getting your mortgage paid off is a distant dream for many, it's a nice goal and if 20% of my stack would do it, I would do it in an instant.
hero member
Activity: 812
Merit: 510
September 22, 2017, 03:43:20 PM
#37
If you think you will be able to manage then why sell bitcoins for it you did buy it at a really low rate congrats for that but if it's not required don't sell bitcoin is like a asset and we try our best not to sell our asset at any time it's better if you hold you coins and sell only when it's really required
full member
Activity: 1400
Merit: 115
Sugars.zone | DatingFi - Earn for Posting
September 20, 2017, 03:48:19 PM
#36
As long as we are confident with decisions we make, taking mortgage and investing in btc isn't wrong thing. The most important is to learn the risks that will occur in the future.
full member
Activity: 686
Merit: 146
September 20, 2017, 01:17:30 PM
#35
I owe about $50K on my mortgage. Should I throw 15BTC at it and be done, or keep paying the minimum and HODL the coin as an investment? 15BTC is <20% of my holdings that I purchased at $250/coin back in 2015, by the way. Thanks in advance!

The sane decision would be to get rid of your mortgage. After all you made a good profit either way.

Nonetheless I'm convinced that BTC still has a great future ahead, so I'd probably try to find a middle ground by selling only part of my coins. For what it's worth keeping even just 1 or 2 BTC may be worth a little fortune at one point.

Either way, you gotta figure out what works best for you, both financially and mentally. If you're financially stable and know that you can handle another 50% drop without feeling the urge to panic sell, hodling may be preferable. If you're just barely able to pay your mortgage and even the thought of the next drop makes you uneasy you should probably sell some.

Having a debt that huge is overwhelming and to wait for several years before fully paying it off would be such a headache. I would have a hard time sleeping at night knowing that I have a debt and that I'd have to pay for years to come. So that you'd have your peace of mind, I think its worth to already pay off that debt.

I agree that it would seem like a waste to throw that 15BTC but in fairness, you've already profited from it. To be able to hold it that long is already amazing and surely, it has accrued since then. As a firm believer that future is bright for Bitcoin, keeping 1BTC or 2 would be ideal for long term investment.
legendary
Activity: 1652
Merit: 1265
September 20, 2017, 12:48:44 PM
#34
My initial investment was $25,000 for 100BTC, so if BTC plummets to $500, I'm out. Conversely, if BTC hits $10,000 I'm paying off my mortgage with 5BTC and HODLing the rest. Again, thanks for the info, guys!

The correct answer for your personal situation depends heavily on your jurisdiction
and especially the terms of your mortgage provider. There may be obstacles that
you currently don´t see at all, like penalties for early repayment of your outstanding mortgage
or other legal issues.

In my country there are several mortgage providers where you aren´t allowed to
repay your mortgage before completion of a fixed time-length.

Where I come from there are also penalties on early repayment unless you pay off the full sum and terminate the mortgage all together.
But yes having a financial expert look into your specific situation is advisable.
sr. member
Activity: 658
Merit: 282
September 20, 2017, 12:37:24 PM
#33
My initial investment was $25,000 for 100BTC, so if BTC plummets to $500, I'm out. Conversely, if BTC hits $10,000 I'm paying off my mortgage with 5BTC and HODLing the rest. Again, thanks for the info, guys!

The correct answer for your personal situation depends heavily on your jurisdiction
and especially the terms of your mortgage provider. There may be obstacles that
you currently don´t see at all, like penalties for early repayment of your outstanding mortgage
or other legal issues.

In my country there are several mortgage providers where you aren´t allowed to
repay your mortgage before completion of a fixed time-length.
legendary
Activity: 1652
Merit: 1265
September 19, 2017, 06:43:24 PM
#32
Three options + 1 bonus option

The Safe Path
Pay off now and be done with it.

The HODL Path
Wait until 2020 and pay off the mortgage (chance BTC will be lower).

The Phase out path (RECOMMENDED)
Every month pay off the mortgage with a fixed amount of BTC (let's say 0.2BTC) until finished.
Recommended because you get an average sell rate. BTC is generally on the rise.

The YOLO Path
Wait until 2040 or later and buy the whole friggin' bank and crash a few Veyrons for fun while you're at it.  Cool (or end up a bum under a bridge telling old stories about owning BTC)
sr. member
Activity: 531
Merit: 250
September 19, 2017, 05:16:23 PM
#31
That's also another option. My outrageous NY school/city/county taxes will be used as deductions, so I'm not really tripping about going incognegro moving my coins. If I move them, I'll ca$hout a cunthair under my deductions.👌🏽
legendary
Activity: 1246
Merit: 1000
September 19, 2017, 04:53:22 PM
#30
I owe about $50K on my mortgage. Should I throw 15BTC at it and be done, or keep paying the minimum and HODL the coin as an investment? 15BTC is <20% of my holdings that I purchased at $250/coin back in 2015, by the way. Thanks in advance!

If you have no problems in paying capital gains tax or in disclosing your identity to exchanges and the government while selling your coins, you should pay off the mortgage. You still stand to benefit from your other Bitcoin holdings if the price goes up. And you become debt free. That is a nice position.
full member
Activity: 490
Merit: 100
September 19, 2017, 02:55:34 PM
#29
My initial investment was $25,000 for 100BTC, so if BTC plummets to $500, I'm out. Conversely, if BTC hits $10,000 I'm paying off my mortgage with 5BTC and HODLing the rest. Again, thanks for the info, guys!
The fact is that Bitcoin can not be predicted in advance, although there are still forecasts for huge growth. Even if Bitcoin drops to $ 500, even then it will be followed by active growth and it is possible to reach these very $ 10,000 or even more.
sr. member
Activity: 531
Merit: 250
September 19, 2017, 02:46:32 PM
#28
My initial investment was $25,000 for 100BTC, so if BTC plummets to $500, I'm out. Conversely, if BTC hits $10,000 I'm paying off my mortgage with 5BTC and HODLing the rest. Again, thanks for the info, guys!
full member
Activity: 280
Merit: 100
September 18, 2017, 03:48:13 PM
#27
i aggree with my previous poster. Sell off a quarter or half of yout investment and try to pay off your mortgage. Dont but all your eggs in bitcoin, what if it crashes.
hero member
Activity: 532
Merit: 500
September 18, 2017, 12:59:50 PM
#26
You may also want to consider selling just enough bitcoin to cover your initial investment (or maybe just a little more than that so that you know that you've banked a little profit).  That way, no matter what happens, you know you're not going to lose money.  That kind of peace of mind can help a lot with making more rational decisions about how you treat the rest of your investment.
legendary
Activity: 3080
Merit: 1593
#1 VIP Crypto Casino
September 18, 2017, 12:47:19 PM
#25
I would suggest to pay off your mortgage, you would still have a really good number of coins for future price rises. It would be really good to have no mortgage & bitcoin would have done that for you.
hero member
Activity: 532
Merit: 500
September 18, 2017, 12:28:57 PM
#24
I think you need to decide on how you're going to view your bitcoin.  If you bought some just to try to make some money off of it, then maybe sell at least part of it and pay down/off your mortgage.  As others have said, the peace of mind is worth it.  On the other hand, if you're looking at your bitcoin as a longer term investment that you believe will be worth a lot more in the future, then treat it as such and leave it alone for now.
member
Activity: 94
Merit: 11
September 18, 2017, 09:34:58 AM
#23
My economy teacher always told me that "your debt is your wealth".

Stay in debt & keep making profit from your bitcoin.
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