rich people super rich are taking loans now why? what it means ?

[ultrloa]

rich people around the world taking loans?
they use their properties as collateral what it can be out come for propery market? what they do with money?
do they use same method as taking loan against your crypto instead of selling a asset?
what we can expecing? the property prices will go higher?

If taking properly to use for collateral to buy cryptocurrency means it is more useful to the buyer than the property. Recently people are seeing cryptocurrency as an asset especially bitcoin. They prefer hodling Bitcoin as a better risk.

Sometimes they don't really want to sell their property and want to get a capital for their trade or other used that's why they try to lend some money to used in crypto if they choose to do this, real estate value increase over the year so I think the owner doesn't want to sell since he know the potential and just want to lend to earn since if he choose this option he can possibly get the two options profit generating for his self.

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[Broly46]

Since the article is from April (!) I really don't know what's the reason for this topic... an attempt to scare the newbies?

Or to show how it is made? But this kind of strategy doesn't cater for everyone obviously. So I wouldn't go that route, or maybe I will make a loan but I know that I can fully pay it off. Those rich has a lot of leverage with their assets as collateral. And then buying cheap and selling in the future take the profits paid the loan and they still have some in their pocket, perfect strategy for them.

The rich people do afford to lose most of the assets they've used as collateral and they'll still be rich.
Normal people should not use loaned money for any kind of investments.

Indeed, that's not the path to follow. So not much use to "show how it is made" imho...

many of the rich people got rich by taking these kinds of high risk moves. but they do it with some experience and the know how of the internals of the markets they are doing it it.
in the end fiat will always dump because of its inflationary nature and there is no escaping that. so if they could get more money even through loaning and invest it in assets that can not lose their value they can make a ton of money. of course again being in the inner circle helps them a lot.

No way it’s risky, real estate has always been viewed as a solid investment for the ultra rich, every ultra rich love to invest to real estate, it’s not uncommon many people think property is high risk, these people are usually rent property their entire life, they love to spread fud, and bearish on market crash, world wars will wipe out everything, business is doing bad and so on, by far all of them are proven wrong again and again, there is nothing wrong about them, because everybody hate taking loan from the bank, nobody want to have any loan, they want to buy anything that they can pay with just cash, yup they intend to buy real estate with dirt cheap price that they can pay with cash too, nobody in their right mind will want to make such an obvious loss making decision, they’re often looking at -50-70% below market rate property, which is some ridiculous rate.

[Rengga Jati]

rich people around the world taking loans?

Why do we have to think about other people in such detail? So you have to know what they owe?

Well, whatever it is, they have a reason. And I believe, this rich man owes a debt not to spend time alone, but to do something, save something, or develop something.

Well, it's better if we focus on ourselves. can we go into debt and pay it? If not, it's better to stay away from debt because this will only make you miserable.

[JuSayCo]

Its just normal for the rich people to take some loans and really some of them have huge loans. This loans will be made to add more capital in their respected businesses. And this doesn't mean that huge loans will make their status in the society low. They probably know all the consequences and they were good in handling investments and other businesses, though we must admit that during this strange time, we are all affected with this pandemic and there is no exemption in terms of finances. Rich and poor are both affected and in order to get back into business, its really necessary to some businessmen to take some loans to cope up and add some health features as per compliance with the government's safety protocol in operating business.

[crwth]

Just like what The Pharmacist said, they invest it in another asset. They are letting their money work for it. And banks also need people to take loans because how will they earn more with what they have? I know they don't want to print out more money and to flood the market as well. To make it look more comfortable for you, I will list things below that could help you.

• Repay other debts
• Invest in businesses
• Cheap Assets caused by the Pandemic

And in the article you showed here, there's an interesting quote as well.

"We have more options than you would expect at this stage of the cycle."

The rich are taking this to their advantage to increase their value further and have more properties, I guess. I think you should comprehend the article more and see that you could get all the answers from there. If you think about it, they are just making more money to buy "discounted" assets caused by the pandemic by borrowing money. Let the money work for you as they say.

[Darker45]

Whether a person is rich or not does not determine whether a person will take a loan or not. Ordinary men take loans. Billionaires take loans. But the ordinary man may take a loan to build a house, pay some bills, start a little business, and so on. Wealthy men take loans to further grow their worth. I haven't been a rich man myself but I don't think wealthy people are leaving billions in banks. That's probably unwise of them, letting their money sleep with very little return.

Somehow we're like them. If we need money and we have BTC, which option should we take: sell the BTC and use the money or use the BTC as collateral for a loan and then slowly repay the loan and get back the BTC? I prefer the latter knowing that it's value is ever rising. That must be the same line of thinking with rich people preferring to keep their properties and use them instead as collaterals if they need money rather then sell them.

[sunsilk]

They take loans as the interest are cheaper this time and it's the strategy of the governments to make their economies alive again. They can't just do nothing while watching the economy go down.

And as for those rich people, they see this as an opportunity. Although they have the resources, they are wise enough to use others money to generate profit from them and from that profit, they'll just pay the loan with the interest.

Somehow, if the economy is going alive again expect that properties value will increase.

This is why you save.  Success is where opportunity and preparedness meet.  The opportunity in this case was people panic selling assets to raise liquidity, mostly because they were recklessly overleveraged. The preparedness is having already saved to be able to take advantage of other people being forced out of the market instead of selling because they wanted to.  But the rich aren't using other people's money, they're using their own.  Leveraging your assets to borrow is still using your money.  If the enterprise goes south, you lose the asset supporting the loan.

They are rich people and for sure they have savings and as much as amount that we can think of. The thing that they do is they use others money through loaning and it's like adding more profitability power on their side but without using or spending their own resource.

This is a very common thing for the rich folks. What do I mean by using others money is the loaning, it's others money and they collateral as a prove that they can pay it or if ever they default, they have it to pay for that loan. But the process and logic lies with that.

[el kaka22]

Doesn't it make sense that when there are so many low prices on basically everything and the whole world is in big economical trouble, you could take out a huge loan and simply buy out companies and buy huge shares and basically all around invest when there is an economical crisis due to pandemic and everything is tanked, so that when things recover and get better those rich people who took out loans would get richer as well.

If I could get in I would too but we are not rich, we are not going to get that much loan from banks to begin with and if I take out a loan to take advantage of this situation I would have to pay that loan back to bank which I do not have the income for, rich people have huge incomes already and with their investment they would have even more so they can do this.

[bitbollo]

We live in a capitalistic society, where money can produce other money, we forget that receive a loans is guaranteed only from collateral.
Isn't just a forum rule but also real economy need a collateral, and a proof to repay the loan with other incomes.

It is an extreme reality in the world that those who have money, banks or any institution only lend to them.As such I think it is an extreme reality.However, those who are getting loans are getting a chance to turn around again.But we can't. This is unfortunate for us.

[abhiseshakana]

Doesn't it make sense that when there are so many low prices on basically everything and the whole world is in big economical trouble, you could take out a huge loan and simply buy out companies and buy huge shares and basically all around invest when there is an economical crisis due to pandemic and everything is tanked, so that when things recover and get better those rich people who took out loans would get richer as well.

If I could get in I would too but we are not rich, we are not going to get that much loan from banks to begin with and if I take out a loan to take advantage of this situation I would have to pay that loan back to bank which I do not have the income for, rich people have huge incomes already and with their investment they would have even more so they can do this.

The answer is simple because they have collateral for their loans, and they need these loans to fund their large businesses which were very expansive in nature, controlling mining, property, plantations, and export trade commodities. The conglomerates take on debt recklessly, even though their projects have proved unsuccessful in these sectors. However, banks continue to disburse credit with feasibility studies which are possibly fake. Not a few of the large corporations commit tax crimes, tax evasion, and save their profits abroad. These big conglomerates seem to want to repeat history once again in times of crisis, namely the success of moving their debts into state debt by influencing government policies to sign bailout policies.

The real bank is a capitalist system ridden by an oligarchy at the national level and globalists at the multilateral level. Even banks have a system that wins over the capitalist system. Only that has a warranty can go into debt. So the small people, their money is collected in banks but usually, they will have difficulty when borrowing money from the bank because only a few people have collateral, namely those who are rich who are close to power or who play with the oligarchy.

[MCobian]

It seems rich people have borrowed money from banks for a long time, not because of COVID-19 then they decided to borrow money.
They do this usually for investing in real estate, usually they buy a house not to live in, but for rent or resell at a high price. Because
rich people do not like to spend large amounts of money at once to buy a house as an investment, so they chose to borrow money from
the bank.

[plvbob0070]

Rich people have the biggest debt because they are capable of paying it. They take a loan to have more assets to run on their business to be richer which means they also pay their debt and take another loan, and that's how they work so there's nothing new about it actually. It's different from how normal people take a loan because they usually just use it for daily expenses that's why they have a hard time paying it, unlike rich business people who know how to circulate their more to earn more.

[Febo]

Rich people super rich are taking loans now why? what it means ?

We are in debt economy. Countries are indebted, why would not be individuals?  When you go buy car they almost dont want to sell you car if you want to pay it immediately. They want to offer you one of their great zero interest loans. That is how it is and that is how people learned and now live by it. Times when people knew that debts enslave them are long gone and forgotten.

[beerlover]

It makes sense to get stuff when they are cheap but it also makes sense that if you have a loan you have to pay for it, so you might get richer in the end of this idea but also how are you going to handle all the payments right now? No one has income to pay loans that could make you rich, if you are taking a loan with the sole purpose of getting rich, buying ton of stocks and all, that loan has to be huge, and if the loan is huge that means payments are huge as well and if you even have enough income to pay for it, that means you are losing big amount of income as well.

So, I understand that it could be done, but I also feel like it is a bit dangerous, it creates this trouble where you are not going to be really easy for a while until the debt is fully paid back.

[hahay]

Basically rich people always have debt or loans with their credit cards, but regardless of these problems I don't think it is surprising if that happens, because it's like a cycle where they have their strategy for a specific purpose. Indeed, ordinary people will be surprised when rich people make loans, but for me it is something that usually happens, because super rich people also don't mean they don't have problems in their finances, but if the guarantee is property I personally am not sure that these items will also rise high in the future, or maybe they just need to make another profit through the guarantee or something.

[romero121]

Rather than keeping their assets idle, they use it as collateral and with the loans go for further investment. We can't expect the investment to give assured return, if the plans go right and profit then one can settle the loans and get back the collateral making his portfolio more some assets out of the investment. Same time if the investment ends losing, he's supposed to sell the collateral and settle the loans.

Money making is all about the way it's been taken forward. If lucky we'll be earning big even with small investment, and if there is no luck even a big investment goes to zero in a day.

[FanEagle]

I don’t think anyone would prefer to sell their property because of money, they would prefer that they take loan and run their business and maybe use the property as collateral because they know for sure that they are going to be paying that money back and getting back their property.

And I think another you have to understand is that rich people don’t take out millions of loans just to invest it in unnecessary things, rather they take those loans to invest in assets that will generate more money in return. At last when they pay their debt they will still have extra money left from the profit they have gotten from the investment. They calculate everything before time.

[The cure]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

[MWesterweele]

rich people around the world taking loans?

Why do we have to think about other people in such detail? So you have to know what they owe?

Well, whatever it is, they have a reason. And I believe, this rich man owes a debt not to spend time alone, but to do something, save something, or develop something.

Well, it's better if we focus on ourselves. can we go into debt and pay it? If not, it's better to stay away from debt because this will only make you miserable.

Each and everyone has their own issues in life, and at the same time yes even the richest man alive on earth i bet has owe a debt but not for something that they can spend for liesure but they owe a debt for a capital on their additional business or investments. And as what happening on our world today, the economic crisis that each country has faced due to pandemic bankcrupt of a business was a timely problem so it is not impossible that even the richest peson may have come to owe a debt.

[lumeire]

Wealthy people are brave enough to borrow more money because they have a lot of assets and they can pay what they owed. Maybe they use it to run their businesses and to grow and earn more in the future.

It is mostly because of the fact that they have more beautiful deals under their sleeves and whenever they have somewhat need for more cash they take a loan because they are sure that they will repay the loan along with the interest on the borrowed money and still be making a lot of profit from the loan that they took, so there isn't a lot of risk involved in these loans for them as they know how to handle these kind of risks in day to day life.