Is it possible to borrow with our property equity to fund a managed
investment share portfolio?
Q.
We have equity of $200,000+ in our home we live in. Is it
possible to borrow with that equity to fund a managed investment
share portfolio? What organisations offer such a service? Is it
worth doing at the moment with the interest rates as they are? We
are looking to either create some extra cash flow or create a long
term investment by taking advantage of our fortunate equity
situation.
A.
You could certainly use the equity to borrow for investing in
share based investments and most financial advisers would be able
to guide you with the appropriate funds. It would also be better to
stick with the existing lender, because that should save costs.
Just bear in mind you should have at least a ten year time frame in
mind to give yourself time to ride out the inevitable
downturns.
Each week financial advisor Noel Whittaker answers your
questions.
