hallett21
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- Joined
- Nov 9, 2010
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Since this is a real estate and financial forum [emoji6].
My parents were born in 58/59. They engrained in my brother (25) and I (30) to always pay for toys (depreciating assets) in cash.
And he and I have stuck to that for the most part, vehicles being the exception.
My question to those older and wiser than myself. Was that stance taken due to the rates of the 70s, 80s, 90s?
In my adult lifetime loan rates have been quite low (relatively to my parents). And you could argue that appreciation/inflation has outrun the interest youâd pay on loans.
In todayâs climate if you were going to buy a 100k boat/toy/whatever in cash. It seems to me you would be better financially to finance it.
Reason being
1. You still have 100k in cash under the mattress
2. 100k can return you 5-10+% annually if you chose to.
3. If the economy tanks you have the cash to purchase appreciating assets.
4. If the economy complete falls out and thereâs a 2009 scenario you have money to feed your family/survive.
Now before everyone says âhere we go againâ no we are not leveraged to the hilt. We still run a paid for 1990 boat. And my truck and wifeâs SUV are paid by my business. And we couldnât rent a 2 bed apartment for what our house costs us [emoji16].
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My parents were born in 58/59. They engrained in my brother (25) and I (30) to always pay for toys (depreciating assets) in cash.
And he and I have stuck to that for the most part, vehicles being the exception.
My question to those older and wiser than myself. Was that stance taken due to the rates of the 70s, 80s, 90s?
In my adult lifetime loan rates have been quite low (relatively to my parents). And you could argue that appreciation/inflation has outrun the interest youâd pay on loans.
In todayâs climate if you were going to buy a 100k boat/toy/whatever in cash. It seems to me you would be better financially to finance it.
Reason being
1. You still have 100k in cash under the mattress
2. 100k can return you 5-10+% annually if you chose to.
3. If the economy tanks you have the cash to purchase appreciating assets.
4. If the economy complete falls out and thereâs a 2009 scenario you have money to feed your family/survive.
Now before everyone says âhere we go againâ no we are not leveraged to the hilt. We still run a paid for 1990 boat. And my truck and wifeâs SUV are paid by my business. And we couldnât rent a 2 bed apartment for what our house costs us [emoji16].
Sent from my iPhone using Tapatalk
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