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Originally Posted by Tapioca
^ I'm surprised that the Smith Maneuver doesn't get discussed more here. People always say that the market is only gains on paper, but for those who are risk-tolerant, the rising market has also increased the opportunities for investing. However, people will say that borrowing on the house is no different than borrowing on margin. The difference is that rising housing values, in particular rising detached values, have given people access to far more equity than borrowing on margin ever could.
Using HELOC for investing, whether it's in real estate or equities, is pretty par for the course for many baby boomers. Heck, it's how some first-timers are able to get into the market today - HELOC loans from baby boomer parents.
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For non-speculators (like myself) that own property, and are going to stay in Vancouver for a long time, it's the only way to really take advantage of the property gains.
I wish I could have got a huge HELOC loan from my parents.....I would have bought a house 5 years ago instead of a townhouse!