In most western countries, even if you could afford to buy land or real estate outright, it might be a better idea to have as much of the equity encumbered by a loan as you safely can. Not only is the interest most often deductible against income, but having that equity encumbered makes any lawyer or government hoping to liquidate the property realize they are going to get next to nothing for their efforts at seizure or confiscation. This becomes even more effective when coupled with a trust structure wherein the property may be encumbered by a loan issued by the trust. One asset search after an auto accident could be all an ambulance chasing lawyer needs to put you on the path to losing all of your titled assets. Not a lot of people fully understand this.
Good job on covering the "other" tangible assets. I kept all three properties I own and explained to my husband that as inflation arrives and the mortgages stay at the same level, it's best not to pay off the places, pay the mortgages and put my money into gold and silver. Then, hold the properties until I feel it is optimal for me to sell. Two years ago, someone made me an low ball offer on one of my properties and I caught hell from hubbie for not selling. Now there are bidding wars in our community. The Chinese are fleeing here, as well as big European money and some south Korean as well (not sure what the problem is in S. Korea but oh well, it's nice those folks are moving here, too). I was just talking about how we might have to put our money into classic cars and properties/recession proof businesses. We don't keep any significant. amount of money in the banks.
Good job on covering the "other" tangible assets. I kept all three properties I own and explained to my husband that as inflation arrives and the mortgages stay at the same level, it's best not to pay off the places, pay the mortgages and put my money into gold and silver. Then, hold the properties until I feel it is optimal for me to sell. Two years ago, someone made me an low ball offer on one of my properties and I caught hell from hubbie for not selling. Now there are bidding wars in our community. The Chinese are fleeing here, as well as big European money and some south Korean as well (not sure what the problem is in S. Korea but oh well, it's nice those folks are moving here, too). I was just talking about how we might have to put our money into classic cars and properties/recession proof businesses. We don't keep any significant. amount of money in the banks.
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