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Old 03-20-2006, 03:15 AM
eastbay eastbay is offline
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Join Date: Nov 2003
Posts: 4,123
Default Re: Read Estate: Never pay off land?

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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.


[/ QUOTE ]

Exactly. This point is too often brushed under the rug in these discussions.

eastbay
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