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The Rules of Wealth, 3rd Edition by Richard Templar

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RULE 47

Don’t rent, buy

We all need somewhere to live. We therefore have the choice as to whether to rent the roof over our heads, or buy it. Most of us can’t afford to buy outright (I doubt you’d be reading this book if you were in this category), so in order to buy we need to borrow a lump sum of money to buy with. But hang on. Haven’t we said that borrowing is bad, bad, bad and we shouldn’t do it? Haven’t we said that this way madness lies because you pay so much interest on what you borrow and so on? Indeed we have.

So how can you own and not borrow, buy and not have a mortgage?

The answer is that a mortgage can actually be viewed as an investment rather than a borrowing. If you buy a property with a mortgage, you make a monthly investment. ...

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