Re: RE investing & personal debt question - Posted by Jeff Bliven
Posted by Jeff Bliven on February 09, 2001 at 10:27:32:
>How have you managed with this???
Quite easily… they earn income above and beyond the additional expense to sustain that added Debt!
My personal belief is that… DEBT IS GOOD!
No, let me re-phrase that… DEBT IS GREAT!!
NO, No… One more time here… DEBT IS REALLY GREAT!!
Why, because YOU, as my tenant, are going to pay it off for me! Thank You, I and my family love and appreciate you!
Not to mention the fact that as time goes by, my asset appreciates and the money I have to pay back is ERODED because of inflation!!
Think back from today, 20 years ago…
For me… Today, my neighborhood that I live in now is about $350,000 for a 1,000sf SFR. 20 years ago, it was 75-100K… that’s what I paid!
ALL things being equal, That 100K 20 years ago was just as expensive as today’s 350K!! If not more!!
Now let’s assume that I had a 20 year balloon on that note… $80,000! Wasn’t that worth a lot more 20 yrs ago, than it is today!! The buying power of that money simply isn’t as strong anymore… and think about this!!
20 years FROM NOW… that same $350,000 house may be well over $1,000,000 to purchase then! Makes that 350K purchase today look like a bargain… DOESN’T IT??
OR… You could worry about debt for the next 20 yrs, and say to yourself… GEE, I WISH I BOUGHT THAT HOUSE WAY BACK IN 2001… I’d be a million-aire today!!
Of Course if you had, 20 years from now being a Milloionaire probably won’t be a big thing at all… maybe a gallon of gas might be $45??
In my opinion, it’s just simply “keeping up with the Joneses”. It’s not till you own several that you really begin to get ahead of the GAME! … You know… The Game of Life!
Bear in mind… This isn’t a dress rehearsal, it’s the real deal… one show and one show only!! So make the best of it!!