Apparently, I know and actually understand far more about personal finances than you do, from what you've just said. Evidently, you imagine that loans are some kind of "free" money" and have no bearing on your assets or net worth. And as far as your retirement is concerned, here's hoping that when that time comes, you don't have to sell into a down or collapsed housing market. Of course, by the time you've paid off all of the loans you keep taking out, your final profit won't be as great as you hope they will be.
You just keep digging that hole deeper and deeper!
Your level of ignorance is truly incredible. So borrowing against equity in a home is no different than borrowing against nothing?
Listen genius, the equity in my home is *mine.* It's something I would not have if I had squandered the money on a diamond instead of a home. It's like having money in the bank. Getting the home equity loan is like taking my own money out of the bank. Yes, of course I have to pay the loan back, but I can always sell the house to pay it back if I need to.
Yes, of course it is unwise to take a home equity loan if you are going to squander the money (on an expensive diamond, for example). It is also unwise to take your money out of the bank if you are going to squander it, but does that money in the bank is useless?
You are truly clueless. I suggest you quit while you're behind.
"Of course, by the time you've paid off all of the loans you keep taking out, your final profit won't be as great as you hope they will be."
No, but it will be one hell of a lot greater than it would be had I squandered the money on a diamond rather than using it for a down payment on a home that tripled in value in ten years.
By the way, many people don't fully comprehend what that means. If a stock triples in value in ten years, that is good performance, but if your home triples in value, that's in a different category because you get the benefit of leverage. With a down payment of 10%, that's like getting a 30x return on your initial investment.
Again, that doesn't make me rich by any stretch. That is not the point. The point is that my wife and I are both *far* better off than if I had squandered a big chunk of money of a diamond to "prove" that I love her.