Whenever I hear the dire predictions about the state of the nations debt - I wonder how many of these are really dire cases and how many are simply rational decisions made on the basis of cheap money.
The Mrs and I have leveraged the homestead 5 times now-
- Once to purchase the first one (doubled in price in 5 years - so I would say a good investment)
- Once to pay off student loans (again far cheaper money - so a positive investment)
- Once to build the home we plan to stay in until damn near dead (instant equity on getting the occupancy permit - so far so good)
- Once to buy into a business (again - so far so good, seems to be feeding the family)
- Once to make the down payment on the construction of a commercial property (steady rent, nice location, great tenant- here is hoping).
Sure, the market could crash. Interest rates could go up. In the meantime, we have created a great deal of equity far faster than we would have if we hadn't made use of the ability to leverage the home.
Although - we should have the home paid off in 5-7 and that will feel amazing. (until we find something else that catches our attention I suppose).
