I went to a business event some time back, the speaker made a statement, while trying to convince people to invest in the business he said they can also borrow to invest in it. Do you think it is right to borrow to invest? Personally i do not think this is right, its too risky. No matter how sure you are about the the investment, its not advisable to do this.
Should one borrow to invest?
- Thread starter eldavis
- Start date
I agree with you. I would never borrow in order to invest. It is too risky because you do not know the future of this investment.
In my own opinion, investing with your own funds or savings is the best. There are some disadvantages associated with borrow money to fund your business like lack of focus on the business
In my location, a lot of people borrow money to subscribe for IPOs. When the IPO shares are allotted, the price of the shares in the stock market usually hike, enabling the subscribers to make good profits. I have also subscribed for IPOs and made some money, but I never take the risk of borrowing money to do that.
Yes, that's right, I totally agree with you. Investing is different from saving. There is a possibility that our funds will not return if the company we invest in goes bankrupt or is irresponsible. In my opinion, this investment is intended for people who already have advantages in financial matters, if our money still limited, in my opinion, there is no need to invest, let alone invest with borrowed funds. Big No, too risky.
No, never, been there done that, i borrow money two times from the bank, the fact that i have to pay the bank every month for 3 years was not suit me well, after did that for 2 times, my wife and i agree to paid all of my debt and now i am debt free and only using my own money to running the shop
Now why should anyone borrow to invest? So if you realized that you have experienced loses in your investment, how will you pay back the money you borrowed? Not advisable.
It is wrong to borrow to invest because investment is a game of risk. There is no invest that is 100% secured. There is no investment that is risk free. When taking decision, there is need to consider the benefits and likely disadvantages. Assuming you borrowed to invest and unfortunately the investment crashed, what will you do ?
It's so illogical to borrow money just to build an investment. It's a crucial act. What if investment fails, how can you pay, the interest alone is a disaster. Invest only if you have capital. It's not good to gamble.
It is true that you can borrow certain amount of money to invest and you are going to make reasonable money out of it.
You can borrow to invest if the business is very viable and it is definitely one of the ways at which we make money for ourself.