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| Bod Malone • Messages: 5 • Years on forum: 11.3 |
02:45 PM 08/27/2014 |
Nowadays personal loans are used by people right and left - starting from buying an apartment to buying a microwave on a credit card.
I would say that people often miss the important perspective on loans: that it's a strategic weapon and should be used only for strategic matters, i.e. purchases that helps you considerable improve the quality of your life in the long run.
The examples could be buying and apartment or a house if it provides a profit or paying for an education at a top school.
If you use a loan to buy a car, you do get short term improvement in the quality of your life, but in the long run you overpay vs. saving and buying the car later. So as a result the quality of your life is a bit worse than if you save and buy a car later.
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| Victoria Skrandell • Messages: 3 • Years on forum: 11.3 |
10:23 AM 08/28/2014 |
That's a vey nice post and perspective, thanks for posting!
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| Tracy Rizzo • Messages: 3 • Years on forum: 11.3 |
12:38 AM 08/30/2014 |
Could you please explain your point that buying a house makes sense only If "it provides a profit"?
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| Bod Malone • Messages: 5 • Years on forum: 11.3 |
12:48 PM 08/31/2014 |
Buying into a house is an investment. It's profitable when house price appreciation + saving on renting > interest rate.
If you buy a house on a very hot market and it bursts in 1-2 years you usually lose value vs. if you rent.
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| Micky Wogan Foster • Messages: 1 • Years on forum: 11.2 |
07:07 PM 08/31/2014 |
I like your approach, will try to explain it to my 10 year old son so he understands why I had to decline on so many of his requests!
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