How deeply in debt are you?

[Cassawary]

Originally Posted by hobart [You must be logged in to view images. Log in or Register.]

I have a positive net worth. I do carry debt on real estate. It's stupid to not at least have a mortgage for most homeowners, but for some it makes sense. CAP rates are too high to not justify leverage on investments in today's market.

You make it sound like debt can be useful!

Advanced Dadding & Dragons 😛

[imperiouskitten]

whats a CAP rate

also, i'd reconsider mortgage for house if kids were involved btw but breederism is its own discussion

[FatherSioux]

Shocking, all of p99 manages money well and has plenty of it. [You must be logged in to view images. Log in or Register.]

[Cassawary]

Originally Posted by FatherSioux [You must be logged in to view images. Log in or Register.]

Shocking, all of p99 manages money well and has plenty of it. [You must be logged in to view images. Log in or Register.]

The plurality of respondents manage money quite poorly, really. [You must be logged in to view images. Log in or Register.]

[Toehammer]

Originally Posted by imperiouskitten [You must be logged in to view images. Log in or Register.]

whats a CAP rate

also, i'd reconsider mortgage for house if kids were involved btw but breederism is its own discussion

CAP rate is basically the ratio of profit to purchase price (usually discussed in real estate). If you get 12k in rent, spend 2k in operating costs, on a rental property you bought for 100k, it would be (12-2)/100= 10% CAP rate. It is basically the profitability as an investment. It is just another (not so fancy) finance term for rate of return after costs.

The main reason a mortgage is a good investment for the average person is because the average person is terrible and saves almost nothing... the mortgage is like a forced savings plan that reduces in cost over time. However, the opportunity cost of a mortgage compared to simply renting a cheaper place and throwing surplus in a broad market stock index like VTSAX or SP500 is shocking.

Also to those above who suggest leveraging mortgages... tread lightly!

[HalflingSpergand]

Mortgages are a scam quite literally. Soon they will pay you to take a home loan, the money is 100% fabricated banks don't own anything. Its a scam for slavery.

[imperiouskitten]

ive been poor and homeless narrated it right here. nuthin to fear, nuthin to hide. my ego is invested in my visible abs and sated husband.

but them po days are OVER jack, nothing like a hard lesson or two to scare you str8. now i'm stockpiling crypto kittens cuz theyll be worth something one day

[Shourty]

0

[HalflingSpergand]

A person could be basement dwelling/mooching/homeless/stay at home son and be debt free so it's not that impressive really, but being a handsome millionaire is

[azeth]

Including home loans in this is odd. Whats the point of this thread?