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I agree with this strategy Azur
Have other people's money do the work.
posted by
SuccessWarrior
on July 12, 2006 at 8:52 AM
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SuccessWarrior
The idea is that you allow your equity in your property/ies to continue working for you. Think of it this way. You could live in one house and have it paid off and just sit on that one asset but then if you ever want to capitalize on it, you have to move out and buy again. Alternatively you could borrow against the equity in your home to invest in a 2nd, 3rd, 4th property and meanwhile you are paying off that borrowing and can also look forward to an appreciation in value. Should you need to, you can then sell one of the other properties if you need capital and it will have no impact on your own living arrangements.
posted by
Azur
on July 11, 2006 at 12:37 PM
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Azur, collecting rent against a loan would certainly be acceptable
You would still want to pay off all your loans as quickly as possible so that the rent money could be used for funner reasons and going without a renter for a month or two would have no bad effect on you.
posted by
SuccessWarrior
on July 11, 2006 at 5:50 AM
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YPunday, I'm familiar with the Primerica plan
In fact, my wife and I compare our numbers to their plan but we are always off because we are putting so much money toward paying off our debts. Once our debts are paid off, the numbers will still be off. But we can live with that. =)
posted by
SuccessWarrior
on July 11, 2006 at 5:47 AM
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I agree too with the idea of paying back loans faster
posted by
Azur
on July 10, 2006 at 9:18 PM
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I think that it can be good debt if you borrow against your
home to build a property portfolio. If you borrow against your house to buy an investment property then rent that second property out, the rent should cover at least a substantial portion of the loan, if not more.
You can keep going that way and people do owning 10-15 or even dozens of properties. It is possible without having to amass big capital to start. If you choose property well there should also be some capital gains when you go on to sell and buy other properties. People do this to create a nest egg for retirement. It is certainly my best hope of funding my dotage.
posted by
Azur
on July 10, 2006 at 9:17 PM
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SuccessWarrior--you live up to your name. I teach the same stuff
Primerica claims to do the same, except not all reps take the trouble to coach the clients on savings (or investing the difference). Congrats---I believe you will do it, because you have the best supporter alongside you, your wife! Shalom
posted by
ILLUMINATI8
on July 10, 2006 at 9:06 PM
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