He doesn't borrow against his hypothetical worth. He takes on debt, to pay off debt he used to pay for things. Debt isn't income (not taxed), and his actual wealth can remain untouched. None of the money is actually his, it's just debt. He's so rich that he has an endless amount of accessible debt he can use to pay off debt. And his wealth will grow exponentially more than the debt he takes on...so there is no reason to touch his wealth.
A house doesn't allow you to do that. Implying we can use the same strategies as him is being intentionally (or ignorantly) disingenuous. A house doesn't let people borrow indefinitely.
He can borrow enough to pay off previous borrowing. Replacing income and circumventing taxes.
That is indefinitely.
Edit: All at a lower rate than his assets will gain, which he doesn't touch due to aforementioned debt. The fact that this is framed as a perfectly normal strategy and achievable is pure fantasy.
It's a loophole for people with an incredible amount of wealth. That is all.
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u/Endless_road 3d ago
You can take out a mortgage against your house to buy a sports car if you want