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"Going into debt you then invest" is probably the exact wording used by pathological gamblers to justify betting their house at cards. In older times, that's ho
by philipov 5y ago
"Going into debt you then invest" is probably the exact wording used by pathological gamblers to justify betting their house at cards. In older times, that's how people gambled their way into slavery.
"I'll borrow some money to buy the seeds I need to plant my crops" and then the harvest goes bad and you have neither food nor money to repay the debt. Suddenly the wealthy neighbor you borrowed from is taking your land to pay for it.
- dionidium 5y agoBuying a house gives you extreme leverage, though, and with extremely favorable tax treatment. You can put as little as $25k down on a $500k house and when the land underneath it increases in value you get to keep all the upside and pay no capital gains on up to $250k in profit ($500k if you're married). And you'll pay, what, a fixed rate of 3.5% for 30 years? If you find a bookie giving you terms like that, then you should take them.
- philipov 5y agoThis is a conversation about hard economic times, when the house could very well depreciate in value, and you'll be stuck with a mortgage worth much more than the house. Remember 2008? It was caused by people assuming like this that the value of houses always goes up.