Conflicting advice to Pay down debt or not?

Thanks for the comments everyone.

I'm coming to the conclusion that I personally want my debt to be 'frozen in time' as soon as possible so while I may not pay it down I don't want to increase it more than I need.

If I can borrow at 2% and invest at anywhere near to this then I concur that there is little point paying down debt. Even a negative carry on the cost of finance by generating a return below 2% will still have value to me because I get to keep the cash and thus some control.

Now I am busy learning about LTD vs Personal ownership. Assuming c24 isn't repealed, and given a desire not to reduce debt, it appears that a LTD is a no brainer whereas once the pro/cons were more closely aligned.

If I was interested in paying down debt with the profits then I can still see real value in purchasing as an individual.

Look like George has at least made on thing simpler based upon an individuals long term goals.Until the next budget....

Unlike others I find it counter intuitive NOT to pay off the debt. In my model, the rent pays off the mortgages and the goal is to be mortgage free as quickly as possible so I can retire. It's great seeing the interest payments reduce and it takes the sting out of interest rate rises and tax changes that target interest payments. I'd be uncomfortable with cash sitting around not doing very much. In that situation I'd look to the best form of investment, which is still property as far as I can see; although not necessarily residential. But that would delay my retirement still further.
I don't rely on house price inflation. That would be a bonus and my properties are in a low price inflation area. I look for yield.

Personally I`ve never seen the logic of taking out a 75% LTV mortgage one day then paying it down the next day. One might as well have taken out a 74.99% LTV mortgage in the first place.

I borrow money to make money. Borrow at 5% make 20%. Thats a 15% profit on each £1
I borrow. Logically I want to max out my borrowings not pay them down.
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Reply to the comment left by "Jonathan Clarke" at "19/01/2016 - 16:37":

If you are forever borrowing what is the end game - When do you stop and what happens when you do?

Reply to the comment left by "John Martin" at "19/01/2016 - 17:57":

The end game can vary depending on how wealthy you want to be and how much energy you have. Its slow at the start but then you reach what i consider to be almost perpetual motion where you could be buying every month if you really wanted to. Your cash flow increases and you are forever remortgaging to buy another one using maybe a mixture of the released equity or/and cash flow. That generates more cashflow and so on and so on .

i stopped buying about 3 years ago though when I hit a brick wall and thought I`ve have had enough now . ( A bit like the Forest Gump film where hes running and running then just one day stops ) So I can either now pay down or cash stash and continue to mortgage term and sell or remortgage but not release equity to extend the term .

I prefer money in the hand now rather than pay down . It gives me far more control when interests rates rise . Once you pay down its dead money until you sell. I like the flexibility I have by keeping it. Who knows i may see another bargain buy cash and do a quick flip. My LTV falls as equity rises and inflation gradually erodes the debt and my cash stash gets larger. So I plan just to sit tight for now

The end game is really death if Im honest. The hard work has all been done to set up this perpetual motion through rents rising and compounded capital growth . That is phenomenal the more you have. Leverage really comes into its own then. This will all keep going for another 44 years all being well
( I plan to die then when I reach 100 and my kids will inherit the lot ) .
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I have leveraged short term in the past and have debts which for many would seem high.

However, overall I am around 20% lending and dropping. My worry is leveraging over a 25 year period will inevitably result in a hike in rates, tax changes, legislation changes. And those odds can stack against you.

Some of the numbers I see eg 50 houses and only £50k profit are crazy. Better to have 4 properties outright earning £50k.

Probably depends on the motivator for each person - is it to be passively well off and 'retire' at 40 - or is it a desire to tell everyone how many houses you own and wait for a run of back luck.

Everyone is different and they are entitled to be....but I know too many people who have lost everything because they kept thinking 'things wouldn't change'....they hit a run of bad luck and lost everything.

Remember the size of the debt is real and not just what it costs on interest only with rates at an all time low. Interest only and interest rates are both under the microscope at the moment.

The more we grumble about Clause 24 - the quicker more changes will come.