[baobabKoodaa]

Oh crap, you're right. Sorry about my tone earlier. What I didn't consider properly is that the leverage ratio goes down over time as your equity in the house increases. So even though you start off with a leverage ratio which allows you to beat the returns from the non leveraged stock market investment, after some point the leverage ratio goes down below that point.

I tried to do the math now (independently from your calculations) and I ended up with the number 16 as "years after which the stock market 11% return has beaten the leveraged 4% return". I think your calculation result 23 is different from 16 because it assumes the loan can be kept as "free money" instead of paying it back.

$20.000 * 1.11 ^ 16 - $20.000 ~ $86.218

$100.000 * 1.04 ^ 16 - $100.000 ~ $87.298

[spacemark]

No worries, glad we were able to come to a general agreement!