Many people are stuck in a bad debt cycle. If income is less than your expenses and you are forced to borrow for essential needs such as groceries, the situation is dire. Good debts are those used to buy assets that grow in value (appreciate) over time. The intention of taking on these debts is to increase the net wealth and passive income of the borrower, despite interest paid. 

In this week’s episode, I’ll explain the importance of LEVERAGE, or debt in growing your property portfolio and why you shouldn't be scared!

 

Discussion Points:

0:00 Introduction

3:04 The problem that we make is saying that debt regardless of its form is bad

4:47 Good debt is deductible and increases return on investment

6:56 Good debt compounds wealth

9:54 In an inflationary environment – good debt increases the value of your assets

11:41 Debt is only good if you can manage its cashflows

13:32 Use the assets themselves to pay off the debt – as a strategy

17:38 A warning – don’t ignore the good debt

18:26 Conclusion

 

About The Host: 

PK Gupta is the founder of the Property Investment Accelerator — a course that helps people achieve passive income through property investing using DATA, WITHOUT wasting months doing "research", spending weekends at inspections OR dropping $10-20k on Buyers Agents each time.

 

Resources:

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