Getting a loan, would you?

[m1903a3]

Originally Posted by DavidJayUden

"The key question is, do the benefits (appreciation and the satisfaction of ownership) exceed the borrowing costs?"

I respectfully disagree. I would re-phrase it to read: "Does the mere joy of ownership justify extending your debt level into dangerous territory."

Where do you get the idea that dangerous territory plays a part?

I'm retired. I was debt free, having no loans of any kind nor any carryover credit card debt from month to month. To me it was a pretty simple math question. A cash withdrawal from an IRA would have been additional income taxed at the highest rate I pay both the feds and the state. In addition, since a withdrawal is treated as ordinary income, it would have put both me and my wife into a higher rate for our monthly Medicare payments. Having a low interest rate loan is far cheaper.

I could pay off the loan tomorrow, but it's cheaper to keep it.

As for investment value, I didn't buy it as an investment. i bought it because I wanted it and can afford it.