Re: Read Estate: Never pay off land?
The problem with borrowing on your home at ~6% to invest at a higher rate (say 12%) is that you're taking on the risk of a 12% investment for the return of a 6% investment. It's not just about your tolerance for risk, it's your tolerance for risk at a given return.
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- You're afraid the IRS will seize your home (They can only get the equity you have in your home, so the less equity, the less appealing it is to them. Though, this won't protect the money you invest, just that you can probably still keep your home).
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If the IRS is after you, you're probably not in a good position to be buying real estate in the first place.
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