That's great, and I like the risk averse and no nonsense attitude. But not using leverage at all isn't necessarily such a great idea for younger people.
There is negligible risk on a mortgaged house you rent out and pay it's own mortgage from it. Especially if you get a fixed rate loan like you should. But it's not the same buying 3-5 houses using leverage for the price of one.
By buying one you can be sure you won't have any troubles in the bank even if the renter doesn't pay or in case of other legal/technical issues. However with 3-5 houses you have a solid income every month and diversified your risk as well in case of problems. The houses pay for themselves, so all you have to do is wait for the eggs to hatch. Of course, you can develop them, refinance them, sell one to fully pay out an other etc. The point is that if you use leverage you have more options and more wiggle room. Loans should absolutely be considered as long as you are using it to finance investments.
Of course, the upper class can buy stuff against their assets, but I would bet anything you also have bought a company car. And you can say there was no loan on it, but the opportunity cost on capital is still there, so you are missing income due to it.
I'm trying to understand some people say dont pay off your mortgage, so you have something to claim. If not, I would have to pay the IRS . And what is the benefit if I paid off my house? Thanks.
all this money income flow and bo gold what will happen if market crash abd inflation bcs us government keep printing plus the brics is ditching the us dollars
That's great, and I like the risk averse and no nonsense attitude. But not using leverage at all isn't necessarily such a great idea for younger people.
There is negligible risk on a mortgaged house you rent out and pay it's own mortgage from it. Especially if you get a fixed rate loan like you should. But it's not the same buying 3-5 houses using leverage for the price of one.
By buying one you can be sure you won't have any troubles in the bank even if the renter doesn't pay or in case of other legal/technical issues. However with 3-5 houses you have a solid income every month and diversified your risk as well in case of problems. The houses pay for themselves, so all you have to do is wait for the eggs to hatch. Of course, you can develop them, refinance them, sell one to fully pay out an other etc. The point is that if you use leverage you have more options and more wiggle room. Loans should absolutely be considered as long as you are using it to finance investments.
Of course, the upper class can buy stuff against their assets, but I would bet anything you also have bought a company car. And you can say there was no loan on it, but the opportunity cost on capital is still there, so you are missing income due to it.
S&P index funds are way better than mutual funds. Been scientifically proven
With money the bank, the trudted bank,2cents a yr way to go
And no hair
How much do you get paid to promote mutual funds?
I'm trying to
understand some people say dont pay off your mortgage, so you have something to claim. If not, I would have to pay the IRS . And what is the benefit if I paid off my house? Thanks.
Not having a mortgage is a mistake this man is mistaken
all this money income flow and bo gold what will happen if market crash abd inflation bcs us government keep printing plus the brics is ditching the us dollars