So, here we are, the 5th and final secret of wealthy homeowners…
Borrow to invest.
You see, in the past, most folk’s strategy was to pay off their mortgage and live in their house debt free. That was a great strategy at the time.
But times have changed.
Today’s ridiculously low mortgage rates have created an opportunity that didn’t exist even a few years ago. We now have the ability to borrow at 1.5 - 2 percent, and lend at 6 or 8, or even higher, depending on your strategy. This has created a massive opportunity that Canadians are beginning to take advantage of.
Here’s the way I like to look at it, separating equity from the bricks and mortar property is a bit like splitting aces in blackjack. (with way less gambling involved of course) You’ve got a better chance of getting to 21 if you split the aces. Just like splitting the house and the equity gets you to your financial goals faster.
Of course there’s risks involved, of course you have to have a good strategy in place, of course there’s details that need to be learned, and that’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast. This was a rather in-depth conversation, I know you’re gonna get a lot from it.
www.guidetothegrind.com
