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Good debt is also known as leverage. It’s essential in the real estate business. Incurring a debt for a depreciating asset is dumb (cars, boats,) but for an ass
by briandear 7y ago
Good debt is also known as leverage. It’s essential in the real estate business. Incurring a debt for a depreciating asset is dumb (cars, boats,) but for an asset that appreciates, it actually is good.
- logfromblammo 7y agoHousing also depreciates. It just so happens that for much of history, the lands that those houses are attached to have appreciated fast enough to counteract the loss.