quote:
Originally posted by rmbbrave
Quote:
quote:Originally posted by duncan macgregor
RMBBRAVE, What you overlook is the fact that most people borrow to live in a house. The fact that you live in the house must be taken into account against renting some where else. The rent that you save paying against the capital gain is no different than collecting rent from a tenant. I have borrowed heaps to buy property, but would never borrow to buy shares. Property as a business must be run with the banks money for maximum gain. Property versus shares, property wins every time for the average joe blow. If you own a property, it only takes three or four years to refinance, then get all your initial deposit back, pay yourself the rent. You can then have a capital gain with none of your initial deposit money involved in the house.
The price of the average house in the area you mentioned doubled in the last eight years according to the REINZ. Next eight years who knows might stall a bit then surge up. MACDUNK
Having never borrowed form a bank - I have a question.
Do you have to be getting a salary to get a loan from a bank?
If I had say $850,000 in cash and shares and wasn't working could I get a loan from a bank for 90% of the value a $300,000 house using only the house as collateral?