debt?, page-13

For me, the first rule of debt is that at some time it has to be repaid.

The repayment can come from the sale of the asset(s), from the income stream of the asset(s) over time or from another source of income.

Would I rather be in debt or debt free? For me, debt free is preferable BUT going into strategic debt can get you where you want to be faster.

First, decide where you want to be.

For me, after divorce I borrowed all I could to buy my home, tough for a while but some decade later, no debt on private dwelling.

Still living here and the equivalent rental is about $600 per week

GFC came along, borrowed all I could (plus 10%!!!) and with my own money too, bought quality shares at amazingly low prices. Took profits and bought acreage on North coast and deposit on rental property in my own area.

Still in stock market with own money (GFC profits) and 3 properties with about 20% gearing overall.

To date, a good story BUT definitely would be a VERY RISKY strategy now.

Debt can help you but;

- have a plan where you want to be
- buy quality assets at the right time.

Finally, we all know when we reach the next beer where there is no coming back, same with debt, think it through and if in doubt - stay on the side of prudence.

A second finally, don't listen to the 'know alls' who know the cost of everything but the value of nothing - educate yourself so when value comes up you are ready to act.

Good luck!!