Quote:
Originally Posted by aschen
if a bank is willing to loan you say 200k for a mortgage at xx percent, what do you know that they do not, such that you have a high probability of a better return than them?
I think the real discussion is the joys of living significantly below your means, and not necessarily debt free vs debt
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I would guess that they need to diversify their investments, are less willing to take a risk on a single family home and don't need a place to live.
Yes, I average a much higher percentage return (especially after taxes) on my investments than the 3.5% I pay the bank.
You could say the same regarding any business loan as well. The bank is actually betting that you can earn a better return than they can.
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