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Learning, Sharing, and Teaching => Investor Alley => Topic started by: kai41314 on June 15, 2015, 07:00:05 PM

Title: Use property equity (in Australia) to invest ETF?
Post by: kai41314 on June 15, 2015, 07:00:05 PM

Hi,

I live in Australia and am considering to use property equity to invest ETF. What are the advantages of using property equity to invest ETF? What is the correct operation model?

Thanks

Title: Re: Use property equity (in Australia) to invest ETF?
Post by: bigchrisb on June 15, 2015, 09:03:08 PM

Works just like using property equity to invest in further property.  Main difference is that you will probably be cash flow positive if investing in AU shares.   I know its a long thread, but worth a read of the Australian investing thread - lots of info there.  I've also written a fair bit about the approach and model I've used in my journal thread.

Good luck!

Title: Re: Use property equity (in Australia) to invest ETF?
Post by: slothman on June 15, 2015, 11:21:25 PM

I recently paid down part of my PPOR loan from offset monies and borrowed it back out via a split loan. I also recently revalued my PPOR and released equity also via a split loan.

Finally, I'm trying to figure out whether to purchase in my name or my partner's name. Grossed up yields at the moment for ETF's/LIC's are roughly 5.5% whereas interest rates are roughly 4.2% but will likely revert to 7% at some point in the future.