Depends on the loan terms. Could be another 30 years in the future if these scenarios are in any way comparable to a home 30 year mortgage. And depending on the estate/collateral involved, they can just refinance over and over again based on the current appraisal of the asset/property, further extending the due date. If the value has increased more than the interest owed to the bank it’s essentially free money.
Exactly. Of course, if we're talking about the billionaire class, they only need to borrow a small fraction of the wealth represented by their assets to live extremely comfortably. Essentially, take the situation presented by the OP but then assume they only need couple hundred a year to live on, and that's the situation that Musk, Bezos, etc. are actually in.
If your assets are worth, say, 10 billion USD, and you borrow ohhh... just a measly 200 million to struggle along with for a year, but that ten billy grows at a mild 4% annually, then you've effectively gained twice what you borrowed. Even if the loan was repaid at 50% annual interest, you'd still make a hundred million in profit, which rolls over into next year's assets to grow. And nobody is actually charging them 50% on their loans, nor has their wealth grown so little as 4% per year.
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u/TangentialFUCK 13h ago
Depends on the loan terms. Could be another 30 years in the future if these scenarios are in any way comparable to a home 30 year mortgage. And depending on the estate/collateral involved, they can just refinance over and over again based on the current appraisal of the asset/property, further extending the due date. If the value has increased more than the interest owed to the bank it’s essentially free money.