RE: Why Saving is STUPID and Debt Can Be a Good Thing!

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Why Saving is STUPID and Debt Can Be a Good Thing!

in money •  8 years ago 

The problem is that the interest rates will kill your investment over the long run - unless it is

a) a very undervalued asset
b) a non-manipulated asset
c) an expected quick return on your investment - so as to minimize loan exposure

Also remember the banks can get a loan at near zero rate from the central bank while the individual has to pay from a few percent to double digit %.

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Interest rates are at record lows and they are tax deductible on mortgages.

  ·  8 years ago (edited)

If you manage to get a fixed and low rate for an investment that seems a no brainer, I'm ok with it. Otherwise it might end up bad.

Indeed... Always have to do a cost-benefit analysis on such things.