I'v been following this thread - didn't plan on commenting until I saw the above remarkQuote:
quote:Originally posted by cantab
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Shrewd, your shares can't get leverage, the bank isn't interested, what does that tell you?
The fact is that you can borrow against shares - it's called margin lending
You can borrow between 40 and 80% against many of the shares listed on the NZX and ASX.
eg, You can borrow 70% against GPG. GPG has an average return of 18% pa while you can borrow the money to buy them at 10% pa - what's wrong with that.
You can't borrow 90% of the value of the asset as with housing but, depending on the shares you buy, you could easily borrow 50% of the value of your portfolio.
I'v made great use of leverage in the sharemarket.
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