All Topics / Help Needed! / Best place for the dollars for the best leverage?

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of FrugalOneFrugalOne
    Member
    @frugalone
    Join Date: 2010
    Post Count: 16

    Just trying to get my head around the best place for maximum leverage.

    Let's say I have $200000 in shares. I also have one property valued at $200000, with $200000 owing on it. From the point of view of borrowing against the equity, and hence using my dollars for leveraging, would my dollars be better off paying of the $200000, or leaving them in shares? And WHY?

    I'm leaning towards it being better in property but would like to get ideas from others.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Unfortunately, banks will lend less as a % of valuation against shares than they will on property (think margin calls). So you have to consider where you will be getting the best capital gains to balance against risk & ease of accessing equity.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.