Not Apple, and last I heard they were the most valuable company in the world, right?
Pay interest to get a tax cut? Pay $10,000 to get a $2500 tax credit?
First, Im sure they have sort of debt on their books somewhere. Weather it be to their venders with a 60 day pay out instead of immediately. It is how it works. Also if you research their strategy is not looked upon as good in the business world. Apple wont be the largest company for long. They are already starting to fall with their over priced exploited products.
Second I never said to pay interest to get a tax cut. That makes no sense if that is why you are doing it. It does make investments more lucrative and attractive though. I just refied my house to 3.6%. I could of payed more off of the note ( I already have 30% equity) but instead I have that cash to invest. After my interest write off I am really paying less then 2.5% which is less then inflation.
I can then take that money I could of put into the house (which would of saved me 2.5% ) and use it in another investment which will give me a ROI of around 8-10% minus property value increases and depreciation. And when I do that I will have at least 25% equity. I dont believe in leveraging more then 20% in properties. I would like it to be closer to 30%.
Risk. Some people are fine with a lot of risk, others aren't.
Thats true but either way, being debt free or not (when it comes to properties) there is a risk. Being debt free you actually have more of a risk if you plan to use that property for investment or retirement fund. Properties that are debt free can lose their value also. One way you lose your money, another way you lose your credit score.
Simplicity is another thing. We have like 5 regular monthly bills now, it really does take a load off not having to even think about bills each month.
With our new house, We probably have $100k in equity already thanks to the crazy deal we got and all the work I did. That definitely lowers the risk of holding a mortgage on it.
I couldnt agree with you more!! I do not beleive that anyone should purchase something they cannot afford.
I have always paid cash for all of my vehicles, jet skis and other hobbies. I do not beleive in borrowing so you can have a cooler car then your neighbor. I dont always need the newest or the best (unless it comes to skis or mountain bikes) but when I do get them I pay cash.
I use my credit card for almost all of my purchases now to keep track of my purchases but the entire bill is paid off every month! I have never not paid it. If I cannot afford it , I wont buy it.
I have my cable bill, gas/electric bill, garbage bill, credit card bill , and my mortgage. It feels good and I dont have to worry about how I am going to be paying them every month.
