[quote=earlyretirement] Absolutely leverage can and does work out for people but it does people in as well. From my experiences over the past many years investing, I’ve learned that people are quick to tell you about all the great genius stock picks or other investments they have made that made great returns. However, they neglect to tell you about all the bad investments or stocks they have made that have lost a lot of money. (Especially on these message boards).[/quote]
I am agreeing with ER on this one. What is so nice about other investments that are tempting people to leverage up at the moment? Jeremy Grantham’s GMO is forecasting 0.1% annual return from U.S. large and -0.8% annual return from U.S. small in the next seven years. If U.S. stock is at the 2009 low, I would agree to leverage up. But what do you leverage up for right now? For rental property, it is not like you have many selections out there. So it is pretty much sitting in cash earning 0.1% anyway waiting for the right opportunity to come.
