ameritas dental that you take out another mortgage which has its own closing costs associated with it let’s say that’s another ameritas dental three thousand dollars so now we’re up to thirty-eight thousand in transition expenses and then you live in.
That downsized home for say maybe another three or four years and then you decide to move out of Austin thus causing you to repeat the cycle all over again so I think you can see where I’m going .
With this real estate has some incredibly high transaction costs buying and selling homes is incredibly expensive and so if you think that there’s a decent chance that you’ll be moving away from .
Austin within the not-too-distant future it doesn’t make a lot of sense to insert another real estate transaction into this narrow gap of time between now and when you ultimately leave the city for example if you’re gonna be leaving Austin in seven years from now then it doesn’t make
A lot of sense to live in your current home for the next two or three years sell it buy a different home live in that home for another three years and then sell it and then move so swipe that option off .
The table and then that leaves us with your core question which is do we pay off the debt or do we invest we pay off our mortgage or do we invest and that really boils down to a question of psychology versus math .
The returns based on historic averages and of course nobody ever knows what’s gonna happen in the future but based on historic performance within the overall US stock market you can generally speaking reasonably hope for investment returns that are somewhere between % to if you invest in broad market index funds in the US.