Should I borrow at 6% interest from the bank for an investment I will make 10%? Will it be sustainable?
Let’s say the interest on my loan is 6% and I will be making 10% from the investment, will I be correct to go ahead and borrow as I will earn enough to pay for interest?
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Yes and No. Yes, but be sure that you are able to service your loan monthly and consider your other payments and plans that may affect you. No there is no guarantee you can get 10% back annually. But the 6% loan annual interest is guaranteed. My personal opinion is invest only what you can afford to lose. Can you afford to pay the bank back should you lose this amount in your investment?