But Debt is a burden... isn’t it?

Traditionally, DEBT has been perceived as a burden. But it is important to remember that there are many different types of debt. Not all debt is to be avoided.

There is very little in this world that actually APPRECIATES in value. We know that cars, boats and computers depreciate at an alarming rate. And the abuse of credit cards for luxury items and consumables has certainly become a worrying social trend.

In contrast, historically, well located residential property has DOUBLED in VALUE approximately every seven to ten years. Therefore, residential property is described as an APPRECIATING ASSET. In addition as property values rise so to do rental returns. Borrowing for investment property is a necessary tool to build wealth. It’s one of the few instances where debt actually works for you.

Back