home equity loan or refianance to buy airplane?

Dave S wrote:
this is my opinion, and nothing more...

NEVER, EVER jeopardize your homestead to finance a hobby.

Well, I MOSTLY agree.

This was a dozen years ago, but I had the cash on hand to buy my plane.
Instead doing it that way though, I thought it made better sense to take
out a home equity loan to buy the plane. I stuck the cash into some
relatively safe (hence low-yield) investment. Made a bit of money on
investment and at the same time got to deduct the loan interest off the
taxes. If something had happened to my income, I would have cashed out
the investment and paided off the loan.

I never would have done it if I didn't have a way to pay off the loan
instantly. Going into pure debt for your hobby is a really bad idea,
IMHO.

--
Frank Stutzman
Bonanza N494B "Hula Girl"
Hood River, OR

Frank Stutzman wrote:
Dave S wrote:

this is my opinion, and nothing more...


NEVER, EVER jeopardize your homestead to finance a hobby.


I never would have done it if I didn't have a way to pay off the loan
instantly. Going into pure debt for your hobby is a really bad idea,
IMHO.


So it was never really in jeopardy!

Dave