What is the best investment option for me?

Q.

For the last eight years I have had a managed fund with a margin loan attached. I owe $190,000 on my home, and I have an investment house worth $650,000, with the loan of $430,000 on interest only. Should I be looking at paying down my home loan, or should I be looking at investing more in managed funds, taking advantage of the current lower share prices, or buying another investment property?

Only you can decide whether property or shares will give you the best returns, but provided your income is secure, and you don't get overcommitted, borrowing for investment is a great strategy. Talk to your advisor about paying as much back on your non-deductible home loan as you can afford and then borrowing progressively as the equity in that property increases.