Q.
I have recently purchased a home that has a mortgage of
$500,000. I got the deposit together from the proceeds of
investments with a margin loan. Do you think it is a good move to
start up another margin facility, with regular gearing, investing
the minimum monthly amounts or should any spare cash go to to
housing repayments. My wife and I earn $2,000 net per week. If
there were any returns from the investments I would put towards the
mortgage.
A.
Only you can decide when is the best time to enter the market,
but now that you have a home, I strongly suggest investigate
borrowing through a home equity loan. The interest rate will be
lower and there will be no possibility of margin calls. Obviously
to do this you would need to have sufficient equity in your home to
qualify for the additional loan.
Each week financial advisor Noel Whittaker answers your
questions.
