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.
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.
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