Why You Should Never Have a Mortgage

People are surprised to find my take on this when they find out I work for a bank and have made a career in the mortgage industry. I rent. As long as I have a say in things, I always will. The “American Dream” is dead. Can we finally admit that? Gone are the days of saving up every last penny to purchase a house so that one can feel the “security” of having an asset to call yours for the rest of your days. Not only has it gotten to the point where most people no longer own a house for more than 3-5 years, but the financial system is has gotten so bad that it seems like every 7 years or so we have another catastrophic downturn, which renders the house you purchased worth far less than you paid for it. Then the panic sets in because you realize you are “under water” and won’t be able to move for years, until the market comes back around again (assuming it does). Yet most of us continue to follow this pattern. This is known as “normalcy bias”.

Real estate is no longer the safe investment it once was. I’ll admit I find myself wondering why people are still buying up property after property, thinking it will be their salvation when things get tough over the years. It won’t. Times have changed. We are on the precipice of everything changing in the world we once knew and loved. The US Dollar will soon no longer be the world reserve currency, central banks like the Federal Reserve and the ECB will be barbarous relics, and the future will be built on things like Bitcoin, Ethereum, etc. Banks will (hopefully) be completely obsolete.

I’d be remiss if I didn’t go into “conspiracy theory” territory, here. Governments LOVE when you buy houses and settle down for 15-30 years. This ensures you will be paying them extortion (I mean…taxes) for as long as you are trapped there. But at least you get a write off on your extortion (I mean taxes) for the ever-rising amount of property taxes you pay each year. I don’t know about you, but I love being able to move whenever I feel the need to. Not tied to a piece of property the bank owns, yet allows you to think is yours.

It’s a different world, my friends. Time to open our eyes and realize it.

CJ