Submitted by onedollarshrimp t3_11dtpxu in personalfinance
onedollarshrimp OP t1_jaayygd wrote
Reply to comment by IHkumicho in Pay cash, HELOC or 2nd mortgage? by onedollarshrimp
I guess I’m more assuming the market will return more than real estate. Especially considering we’re finishing basement and 3rd floor.
IHkumicho t1_jab0sgk wrote
What you're spending the money on doesn't matter. The question is whether the investments you have will outpace the loan amount. It was one thing when interest rates were 2.5%, but completely different when you're looking at a 7% (or whatever).
The only way you should be asking whether the real estate returns will be bigger than the investments is whether you should do it at all.
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