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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (35646)	7/19/2005 12:17:18 PM
From: GraceZ	Respond to of 306849

Also, people don't necessarily choose to finance something because they don't have the cash. I have plenty of clients who choose to finance an addition or an improvement when they have more than enough cash to pay for it outright. They choose to finance something because they are earning far more on their investments than the cost of borrowing after taking into account the tax consequences. Plus, they want the flexibility that comes with a large cash position. Inversely, I've seen people pay down housing debt because their more conservative investments aren't returning more than the cost of the money.