Okay BigGambler if we assume that the asset is not worth...

Okay BigGambler if we assume that the asset is not worth anything more in the future in todays dollars we are still way ahead because of LEVERAGE which you do not seem to understand. In Rawbaws example we borrowed $500k to buy a property that in the future will be worth $778k. Okay so that $278k is only the inflation adjusted value so lets ignore that. What we will have though is $500k (in tomorrows dollars still captured as equity) that was borrowed from the bank but was PAID OFF primarily using the assets OWN INCOME. It is as simple as that!