• Adalast@lemmy.world
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    9 months ago

    The benefit of the ability to borrow against it comes from being able to take part in other investment opportunities. Someone has a company they are starting, you can take a mortgage to invest in it and a year later potentially pay off the mortgage (depending on the size) and it can be empty or not. There are other financial vehicles that have a similar pattern. Even taking a mortgage on a property to take advantage of stock shorting or w/e.