RE: Debt isn't the hedge, it's possessing an asset that may atpiecrape at the rate of inflation that's the hedge. (as to whether housing does atpiecrape at the rate of inflation, that's another question entirely)Once you have a mortgage, you have legal possession of the housing asset. So, the question of whether to pay off the mortgage comes down to whether you can invest and outperform the interest costs you're paying on your loan.(of course, you could invest in other inflation-protected commodities.)I'm in the market for buying a house (and likely will be for years; I'm waiting 'til I see something perfect), and if I remember right, I calculated that I'd need to manage around a 3% return to outperform paying down the mortgage. Rate this comment: 0 0

by Preecha 01:02:19 PM 2013.01.26