How to Make Your Portfolio As Inefficient As Possible – Pay Down the Mortgage

mortgage portfolioThere’s been no shortage of fear-mongering about the Canadian housing market – whether that’s Deutsche Bank stating it is overvalued by 65 per cent, or U.S. hedge funds shorting the country’s banks and mortgage providers.

Jerome Hass, a portfolio manager at Lightwater Partners Ltd., had similar views about the London, England, property market just under a decade ago, as well as Australian housing prices 15 to 20 years ago.

“I thought Sydney was so overheated that it had to implode sooner or later, he said. “The same goes for London. I lived and worked there, but never wanted to buy property because it seemed so expensive.”

Then Hass moved back to Canada and bought a house in Toronto. He couldn’t believe how cheap it was.

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This article has 7 Comments

  1. Kara Maxwell

    It's very true. Most people are very eager to pay off their mortgages before the right time happens. I should know i was in the same field when i did own a home.

  2. Tevin Buhman

    Maybe i am missing something but when was capital gains tax free? I thought 50% of capital gains are taxed at the margin rate?

  3. Treyton M

    Why not just buy quality REITs and be done with it?

  4. Mitchell

    I still don't understand what is being said int he article. It seems like it is best if you are in a high valued home in a high valued geographic locaton in Canada. What about the rest of us?

  5. Keelan

    Yea, i can attest when i lived in London and moved to Toronto prices here are much lower. It's like free candy here. I bought a few homes and enjoying the returns.

  6. Lochlan S.

    Hey here is a better idea: Rent 😛

  7. Jermaine

    Don't agree…why carry a mortgage that can and will keep you in debt for long periods when you have the cash to pay it off immediately? Makes no sense.

    I still dont see how it relates to a stock investment account though.

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