At least in the U.S. PMI isn't at all what you think it is. It pays the bank when you default on your loan. You still lose the house. PMI provides no benefit whatsoever to the homeowner (and apparently after 2008 we learned it didn't do much for the banks either, the whole thing's a bit of a scam).
Of course you should. In general, you should use leverage if you have an investment opportunity that has the similar tenor and where risk-adjusted expected return beats the cost of credit.
Bankruptcy sticks with you for LIFE, not just 7 or 10 years. Loan applications often ask, have you ever filed bankruptcy, it's a black mark forever.
Because being "smart" often clouds good common sense and decisions based off of pulling one over and being smarter than the situation don't adjust for the risk factor if now having a huge mortgage if your investment activity doesn't pan out. Plus to tell people "bankruptcy isn't that bad" is misleading at best.
I cannot believe I just read that statement here. Are you out of your fucking mind? You have ZERO clue about what personal bankruptcy means in the USA. Please have a steaming hearty cup of STFU.
You must be on this topic for the lulz, no way someone as well respected as you can make that statement as advice for the majority.
Honestly I'm quite shocked on the HORRIBLE advice given in this thread. Basically people should mortgage everything, max out credit cards, cash out retirement, whatever it takes because credit is cheap and if it doesn't work out bankruptcy is no biggie. What is this 2008 again???....pure insanity. People thinking they are way smarter than they really are. You guys go ahead and have fun with that.
Well, for lulz, also known as entertainment. Majority of people would NOT have the problem that the OP has. Majority of people definitely would not have any misgivings about buying real estate for cash like I do. However, saying that carrying any debt is wrong is also a bad advice - there is certainly a time and a place for it. Most success stories have debt (real or implied) in them. I understand that personal debt is an emotional issue for a lot of people. Owning a home is also an emotional issue. However, given that this is a trader forum, we should try to discuss things on a quantitative level. When I said PB was "not that bad" I did not imply that it's a walk on the beach with a pretty blond model. Rather, I mean that it's not an end-of-life-as-we-know-it and plenty of people survive it and move on. Also, my comment about non-recourse mortgages is definitely true, don't you agree?