My situation is that we have put most of our money in our current house which is free of debt. In addition we have some money in index funds, worth about 15% of the value of the house.
In Norway we pay 0,85% tax on assets. Savings on the bank and in stock are 100% taxable. A primary house is only taxable up to 30% of it's value. Our house even less, about 25%.
Mortgage on a house costs 2,15% rent. Some of that (to a certain max) can be withdrawn from taxable income in a lower tax scale.
When cashing in the profit on stock funds, we need to pay income tax over the profit. As we are in the highest income scale, this is almost 50% tax.
I would typically choose one of these funds (lower on the page):https://www.klp.no/person/fond/indeksfond
And then only use the same currency as our loan is in, so that we don't take any value risk as well.
Of course having a high mortgage on the house means paying a lot of rent each month, which will reduce our month to month cash savings. The index fund should better give a good revenue to make up for that.Would it be beneficial for us to take up a mortgage on a part of the house and put it into a cheap index fund?
My idea is that it would only pay off after a good stock marked dip. Do these dips tend to last long enough, like a week and a half, to organize the paperwork to retrieve a loan during a dip? Or should we already get the loan, and wait, or invest at a random time?