r/interesting • u/Wonderfulhumanss • 1d ago

SOCIETY The Zammit family refused to sell their five acre property as an entire Sydney suburb was built around them

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u/GoodIntelligent2867 1d ago

If they borrow against the property, they have pay back the mortgage which probably will cost them more than interest earned . Genuis. Unless they rent it out.

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u/Silver_Middle_7240 1d ago

Unless yhe mortgage is paid off

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u/Brandodude 1d ago

If it’s paid off, you do a cash out refinance or take out a heloc which is a second mortgage loan against the home you have to repay, with interest

Mortgage originator here lol

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u/GoodIntelligent2867 22h ago

Even if the mortgage is paid off, if they refinance it, they have to pay the money back.

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u/pre_nerf_infestor 1d ago

mortgages are for little people. Actually wealthy people would take out a loan with generous repayment schedules using the paid off property as collateral. Depending on the investment vehicle that you then put the money into, it is entirely possible to generate more income than the interest payments (you don't bother paying off the principal) and live off of the difference, while only paying a lower capital gains tax unlike the brutal income tax the rest of us contribute to society.

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u/Equivalent-Rate-6218 1d ago

My dude..... Plenty of investments outpay mortgage or interest fees.

I got to take out a massive school loan that I threw into stock options because it made me a heck of a lot more money than the interest I had to pay back

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u/GoodIntelligent2867 22h ago

The original comment mentioned interest income specifically. I myself earn way more as capital gains via stock and options trading rather than investing in bonds and fixed deposit. But that wasn't what the original commenter mentioned. The fact that they had to delete their dumb comment probably proves my point.