So you think there's no circumstances people should take on debt?
I'll more than happily take on a mortgage at 3% when I believe the property is going to appreciate in value, that I have somewhere to live, can pay less than what I would in rent and know that not buying the property in cash upfront means I have another $xxx,xxx to invest in my other (greater than 3%) profit making businesses.
A mortgage makes sense if you can generate a return greater than 3% on your investment by putting the money you would have locked up in the house into other things.
The problem is people that take on mortgages on the verge of what they can afford, living paycheck to paycheck to pay off their mortgage.
There are several instances where taking on debt makes sense. For me, it doesn't make sense to take on debt to find a house to live in, when I'm on entrepreneurial mode, and I spend most of my time flying around the world getting things done.
If I have a great business idea, I'll take on that debt all day and night, because the end goal of my business it TO MAKE MONEY. The end goal of your house, IS NOT TO MAKE MONEY. It's to "One day, I may sell it, and it will appreciate (hopefully)."
It's one thing to spend money on shit that makes you money, and increases your overall assets, since you actually have ROI. A house has no ROI, it's only value will be ONCE and IF you sell your house. You're NOT MAKING MORE MONEY buy living in your house, maybe if you rented it, it would make sense, but if you are living in it - don't come in with this dream that you have this great asset. A house is a fucking house, One tornado comes through, you have fucking nothing. A business can have intellectual property, recurring revenue, royalty checks, it has customers, it has clients, it has multiple dimensions that GENERATE MONEY. Your house DOES NOT GENERATE MONEY, it sits there, being prettied up by you, so "one day" you "may or may not sell it".
Investing in MONEY coming in, not money, sitting there doing nothing. There is a perceived value of a house, and then there is actual value in money coming into a business. Money coming in, is more valuable then, oh this house is going to be worth something to someone one day, that's a higher value than I put in. Buying a house with that mentality, you've just created debt, that mean you have, in accounting terms, increased your "lost opportunity cost". That money you spend on painting and shit making your house pretty, you could have spend it on a new employee who will generate X amount of more dollars for you.
Explain to me how doing what everyone else is doing , is possibly going to make sense? How is following all the retards doing the same shit over and over make any sense? The mortgage and bankers have brainwashed you to thinking it's okay to take on debt that doesn't generate you income. They sold you a dream, that by somehow being chained for the next 30 years to a mortgage is a DREAM, and the RIGHT THING TO DO. I can tell you that you've been lied to, anyone that knows me offline knows what I do, I'm a partner in a commercial bank, and marketing agency - you people have been so fooled into thinking some of the craziest shit it's un-canny. Does it really make sense to pay SOMEONE ELSE for the rest of your left for a luxury item? Does it really make sense? Wouldn't it make sense, that people pay YOU for the rest of their life on a luxury item? Which side of the fence do you want to be on, with the crowd of sheep or the people getting paid from the crowd of sheep?
I'm going to leave you with a quote that had me laughing my ass off, but it stuck to me to the core when I read it, it's not for everyone's taste:
I remember when I used to live in a shitty house, waste my time with children and shit.
Now I just count money all day.
Good luck bros!
