Comments on: You Might Not Be Aware of This: You Are Leveraging http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/ This is where your finance takes place Fri, 19 Mar 2010 06:34:17 +0000 http://wordpress.org/?v=2.9 hourly 1 By: The Financial Blogger | Become Frugal Now! Ask For A Loan! http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-1284 The Financial Blogger | Become Frugal Now! Ask For A Loan! Thu, 22 Nov 2007 11:04:56 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-1284 [...] strategies for to pay off your tuition fees, your property and possibly your car. In fact, your life is full of leveraging. Any leverage technique is good for an individual as long has he benefits from a consistent cash [...] [...] strategies for to pay off your tuition fees, your property and possibly your car. In fact, your life is full of leveraging. Any leverage technique is good for an individual as long has he benefits from a consistent cash [...]

]]> By: There's a fine line between good and evil... http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-1055 There's a fine line between good and evil... Sat, 27 Oct 2007 19:14:19 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-1055 [...] Financial Blogger and Tom Bradley pointed out, leverage is an instrument that almost everyone uses when they buy [...] [...] Financial Blogger and Tom Bradley pointed out, leverage is an instrument that almost everyone uses when they buy [...]

]]> By: Outroupistache http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-164 Outroupistache Wed, 20 Jun 2007 23:49:25 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-164 Yup, a mortgage is leveraging. If one pays $10k down on a $200k house and borrows the $190k and the value of the house goes up $10k then there is a profit of 100% (minus the borrowing costs). As people in the USA are now discovering, houses as assets can also go down in price so you can lose 100% too, at least on paper and maybe in reality, if you are forced to sell. Yup, a mortgage is leveraging. If one pays $10k down on a $200k house and borrows the $190k and the value of the house goes up $10k then there is a profit of 100% (minus the borrowing costs). As people in the USA are now discovering, houses as assets can also go down in price so you can lose 100% too, at least on paper and maybe in reality, if you are forced to sell.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-163 The Financial Blogger Wed, 20 Jun 2007 16:55:47 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-163 CC, FB, TMW: I know that you were only talking about borrowing to invest. However, I think that people should realize that they are already leveraging in their life and therefore, it may not be that bad. Having a home is not necessary. Although I would not live in an apartment again, it does fulfilled the need for a shelter with much less risk than contracting a mortgage. I think that leverage is for everybody, maybe not using leverage to go on the stock market, but more on what people like/know better. Anyway, I’ll write more about that as I find this topic very inspiring. Cheers, FB. CC, FB, TMW: I know that you were only talking about borrowing to invest. However, I think that people should realize that they are already leveraging in their life and therefore, it may not be that bad.

Having a home is not necessary. Although I would not live in an apartment again, it does fulfilled the need for a shelter with much less risk than contracting a mortgage.

I think that leverage is for everybody, maybe not using leverage to go on the stock market, but more on what people like/know better. Anyway, I’ll write more about that as I find this topic very inspiring.
Cheers,
FB.

]]> By: ThickenMyWallet http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-162 ThickenMyWallet Wed, 20 Jun 2007 14:57:07 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-162 Thanks for the mention. Everyone does leverage but my post explicitly excludes leveraging for real estate and, like CC's post, speaks only on leveraging for investment purposes. Thanks for the mention. Everyone does leverage but my post explicitly excludes leveraging for real estate and, like CC’s post, speaks only on leveraging for investment purposes.

]]> By: FourPillars http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-161 FourPillars Wed, 20 Jun 2007 13:02:18 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-161 Thanks for the link FB. You're right - we all leverage at one point or another but as CC pointed out, some leveraging is non-essential. Mike Thanks for the link FB.

You’re right – we all leverage at one point or another but as CC pointed out, some leveraging is non-essential.

Mike

]]> By: Canadian Capitalist http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/comment-page-1/#comment-160 Canadian Capitalist Wed, 20 Jun 2007 12:41:34 +0000 http://www.thefinancialblogger.com/you-might-not-be-aware-of-this-you-are-leveraging/#comment-160 My post of leverage is strictly in the context of borrowing to invest in equities. Leveraging to buy a personal residence is NOT the same as leveraging to invest in the equity markets. For one thing, a home provides shelter and if you don't own you have to rent anyway. Bottom line, you have to spend money on shelter. Carrying an investment loan isn't one of life's basic necessities. My post of leverage is strictly in the context of borrowing to invest in equities. Leveraging to buy a personal residence is NOT the same as leveraging to invest in the equity markets. For one thing, a home provides shelter and if you don’t own you have to rent anyway. Bottom line, you have to spend money on shelter. Carrying an investment loan isn’t one of life’s basic necessities.

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