Financing a motorhome.
My old motorhome needs to be replaced. It's 26 years old. Everything works but, I feel like it has major repairs in the near future that will cost more than I'm willing to pour into a unit that old....
Forum Discussion
It's the RISK that using 'other people's money' that can put a person in a 'situation'.
We will go into another downturn in the economy as it cycles pretty much on a regular basis. You want to have a place to sit when the music stops. I saw a few acquaintances trying to act like big dogs buying houses before 2008 and using them as weekend rentals (popular retirement location). They, too, said 'using other people's money' and it bit them hard in the arce, real hard. They lost everything, million dollar homes that fell to less than half, bank repossessions, lawsuits, etc. It was not pretty.
Even commercial real estate takes a beating. What you are earning today might be a deficit tomorrow. I don't know if you are talking about physically owning commercial real estate or an investment that buys commercial real estate. When stocks fall, generally, so does everything else whether you own the physical building or investment.
I'm from the 'never finance' group. But, I know everyone cannot pay cash but they should be very careful and understand the total cost of financing. If someone finances for 20 yrs. the economy can go up and down several times. Those investments that were earning good money could be much lower but their financing costs keep going. So, they could be paying way more in interest than what they are earning on investments.
Safe travels to all!
MM.
We will go into another downturn in the economy as it cycles pretty much on a regular basis. You want to have a place to sit when the music stops. I saw a few acquaintances trying to act like big dogs buying houses before 2008 and using them as weekend rentals (popular retirement location). They, too, said 'using other people's money' and it bit them hard in the arce, real hard. They lost everything, million dollar homes that fell to less than half, bank repossessions, lawsuits, etc. It was not pretty.
Even commercial real estate takes a beating. What you are earning today might be a deficit tomorrow. I don't know if you are talking about physically owning commercial real estate or an investment that buys commercial real estate. When stocks fall, generally, so does everything else whether you own the physical building or investment.
I'm from the 'never finance' group. But, I know everyone cannot pay cash but they should be very careful and understand the total cost of financing. If someone finances for 20 yrs. the economy can go up and down several times. Those investments that were earning good money could be much lower but their financing costs keep going. So, they could be paying way more in interest than what they are earning on investments.
Safe travels to all!
MM.
