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Borrow against shares

Noel Whittaker | June 24 2009 | The Sydney Morning Herald & The Age (subscribe)

Can I borrow against my share portfolio to buy an investment property?

Q.

Can I borrow against my share portfolio to buy an investment property, rather than selling an asset I want to keep and creating a CGT problem?



A.

It would be better to buy against your home if you have one with a substantial equity as you can borrow much more against the security of real estate than you can against shares. However, if you have a large parcel of blue chip shares, and a good relationship with your bank, and have a good income, you should still be able to use the equity in the shares to buy the property.

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