I don't plan on ever being debt-free, at least not before I'm 70. The only debt we have right now is for our mortgage. But we live in Vancouver, where, when we move to a house, it's going to cost at least $900k for a fixer-upper. We had set out with the goal of eventually being mortgage-free and we decided to buy a lower cost home while our children are under 5. But then houses in a decent school area went from being $400k to $900k+. So much for trying to live on a modest budget. Now we're going to have to fork out an extra $2k a month, instead of the $800 we'd hope to postpone.
I don't suppose relocating is an option? What about going with a longer amortization, investing the difference and (assuming the investments appreciate faster than the mortgage interest accrues) pay off the mortgage that way?
Relocating isn't an option, as it would put us even further away from family than we are now. My husband is in software and any place with good jobs would entail an expensive home.
I'm not sure what you mean by a longer amortization. If we go with the longest available amortization (35yrs), we'll still be 70.
I don't mean taking the full ammortizsation to pay off your mortgage, just using the longer term to reduce your mnthly costs freeing up more for investing. I'm making the assumption that the inv estments will grow faster than the interest on your mortgage increases which means that by investing the difference, you'll ideally be able to pay off your mortgage faster than by putting all your money into it at the onset.
What about flipping properties? By purchasing new homes and locking in the price, you'll appreciate on two properties at once while only having to make mortgage payments on one at a time. My wife and I are doing that now to pay off our mortgage (mind you, we live in Sherwood Park, just outside Edmonton and are certainly benefitting from the hot market right now). Regardless, in any market that property value is increasing, it's a good way to make money for nothing since you'd be paying a mortgage anyway and, provided each home is a principal residence (I believe for at least 6 months, though I might be mistaken), you won't have to pay capital gains on the profits.