Mortgaging Properties in Monopoly, and in Real Life
In the board game Monopoly, you can mortgage the properties you own. What does this do? It gives you some cash to work with, so that you can buy more properties.
Like real mortgages, you have to pay back the money with interest. It sounds pointless to mortgage properties, then, if you look at it strictly in terms of how much you owe.
The trick is to mortgage properties so that you can use the money to buy as many properties as possible. Real estate in Monopoly always appreciates (for the most part), so it’s an investment that’s worth the price of having to mortgage your other properties.
In real life, property values aren’t as guaranteed to go up. However, real estate prices tend to increase in the long term. Mortgaging your properties in the real world to buy new properties may be as good an idea as it is in Monopoly. A little debt might be worth the huge profits.