[Leica] Go ahead, buy that Leica

[Jayanand Govindaraj]

No problem at all if it is for business, and the income generated from the asset will repay the debt.

Otherwise, how will you repay the loan? If your cash flow from other sources are sufficient to do so, then there is no financial strain in buying Leica equipment, and there is no problem, do so.

Let me give you an example, a little extreme, a little simplistic, to illustrate what I mean. This sort of decision making is very common in US households, where using credit card debt to finance luxuries is common.

If you have $10,000 on hand, and credit card dues of the same amount. Instead of paying off the overdrawing, you go and buy a Leica SL. In effect, you have borrowed $10k on your card to buy the camera, and it is going to cost you $3000 to $4000 every year in interest cost alone, to buy an asset that generates no income. Which is the better deal for your financial security - paying off the credit card dues or buying the Leica?

Cheers
Jayanand


Sent from my iPad

> On 22-Dec-2015, at 12:08, Mark Rabiner <mark at rabinergroup.com> wrote:
> 
> I got a loan for my first Hasselblad and lens and Balcar strobe kit and
> Gitzo Tripod using my car for collateral as I  could not afford a big
> business loan. It was certainly worth it. It got me starting in pro
> photography. Without it it would not have happened. I'm curious what's so
> horrible about getting a loan for a needed tool for your profession or very
> serious hobby? I did not know it was a no no.
> 
> 
>> On 12/21/15 10:35 PM, "Doug Herr" <wildlightphoto at earthlink.net> wrote:
>> 
>> Jayanand Govindaraj wrote:
>> 
>>>>> 
>> Peter,
>> I would agree with you with one major financial caveat (I am also a finance
>> professional of over  40 years experience, by the way) - if you can afford it
>> without depriving your family of essentials, without taking a hit on basic
>> savings,  and most importantly, not on borrowed money. If you have any type of
>> short term loan outstanding, pay it off first, it is a much, much better long
>> term deal. Use cheaper tools till you can genuinely afford Leica equipment it
>> without financial strain.
>> <<<
>> 
>> Mostly agreed.  I'm currently using a cheaper tool but... I'm on the verge of
>> selling my Sony and going without until I save the $$$$ for the SL.  No way am
>> I using a credit card or any other loan of any kind.
>> 
>> The Sony's buttons are too many, too small and too close to each other
>> especially with winter gloves.  Very frustrating to use.  My 500mm lens is
>> also a cheaper tool.  I can tolerate its foibles because its weight and price
>> tag are below my upper tolerance limit.
>> 
>> Doug Herr
>> Birdman of Sacramento
>> http://www.wildlightphoto.com
>> http://doug-herr.fineartamerica.com
>> 
>> _______________________________________________
>> Leica Users Group.
>> See http://leica-users.org/mailman/listinfo/lug for more information
> 
> 
> 
> 
> -- 
> Mark William Rabiner
> Photographer
> http://gallery.leica-users.org/v/lugalrabs/
> 
> 
> 
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