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Originally Posted by firebug
Let me weigh in on a few topics.
5) Interest only mortgages. My parents bought a house in Lake Bonavista in the early '70s for about $22,000. If they had paid interest only on it and never a dime in principle (investing it instead) would they really be that stressed now about their $22,000 mortgage on a $500,000 property?
~bug
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Jeez, you know....that line right there puts it into perspective. Real estate will have it's spikes and valley's, but over a 30 year period a piece of property will go up in value. Certainly something to think about. I always held the illusion that I'd pay down a nice chunk of my house within 5 years and than use the equity in it to borrow to try and get 3 additional houses to be used as revenue property's, get those paid for in like 15 years, own 4 houses, and than maybe leverage another 2-3 houses off of those. That way when I was like 60 I'd have 5-6 rental property's that I could use as an income source. I've always liked the idea of a revenue property because at the worst someone else is paying off money that you borrowed, and you still have the potential for the asset to appreciate. But perhaps theres a better way to do things.
Any more advanced books on this subject that you finaciers reccommend?