Length of mortgage: philosophy

[Tokyo]

Retire Japan wrote:

It's a good point that illustrates that most of personal finance is psychology, not information nor reasoning. Understanding ourselves is the best way to make financial decisions we can live with.

Hear, hear!

After all, given that we are discussing mortgages here in Japan - although definitely less furiously than on some other threads - one could credibly argue that we are not optimizing the use of our money given the unlikelihood of market growth. But investing in a home goes far deeper than economics. “The heart wants what it wants” (with apologies to Mia Farrow).

[Isodora]

Very true that the decision is not always a rational one, and that it is important that it fits your personality.

Also age may play a role. I took out my first loan in the early 30s and it did not trouble me at all (although I paid the remaining 40% back after about 14 years).

Since 2018 I have a small loan for our used very reasonably priced apartment, and cannot wait to be able to pay back the rest in two years. As someone pointed out, the relief to be debt free overrides any possibly more prudent financial decisions.

A 100 % loan for 30 or 36 years for a new house that seems to be so widespread here, would have given me serious nightmares even at a much younger age.

[captainspoke]

On the subject of rational decisions...

A time or two that I've glanced at the title of this thread, I've read it as "Length of marriage: philosophy."

[RetireJapan]

On the subject of rational decisions...

A time or two that I've glanced at the title of this thread, I've read it as "Length of marriage: philosophy."

Also an emotional decision not based on logic

[kuma]

Thanks for all the responses.

Interesting discussion and differing philosophies.

[Tkydon]

https://www.youtube.com/watch?v=w3z0vVEVT_s&t=16s

https://www.youtube.com/watch?v=9N94EI6rUNo