Borrowing against property to buy shares

Well I suppose the gearing is the same.

But the maneuvering of your investment vessel is different. Shares can be sold in an instant. Property lumbers along.

 

I am thinking about this too.

I have some equity already through top up last year(Not LOC , but normal IP loan). I will use that plus margin loan to invest balanced fund. That's equivalent of 100% gearing.

My questions is , how to capitalize interest in my home loan to get max destructibility just like in margin loan?
Correct me if I am wrong. The loan is with Westpac. Look like westpac will auto debit interest from current loan account if there are fund available also no direct debit account linked. Sound like that's exactly what I need do to capitalize interest.

 

large loan amounts are case by case depending on the lender. Under 80%, against an investment property not using the deemed dividend income for servicing and with a soa from a planner would be pretty easy.

Against the ppor, without a soa and trying to use the dividend income for servicing, a little harder.

 

So far I have Westpac (2000 shares), Woolies (1000 shares), and Telstra (4000 shares)..I am buying as the value is there. Watching ANZ and CBA at the moment.

 

Not interested in the ETFs or LICs?

 

4.7% offer for those in Premier package only or anyone ? That is a good margin rate if that is variable.

 

No fixed ... 3,6,9 mths...variable I think is 5.45% from memory...still a great rate considering I am on 6.5%

 

Yes I am but need time to process...all take time..too much going on at work...buying places ..refinancing...developing.... no time guv

 

Yep. I hear that.

 

Yes but shares cannot be given a cosmetic Reno or subdivided.

 

You don't need a B&P report on shares lol.