Originally Posted by
iceman
No big deal is it. As Vaygor says, he owes 7% of his portfolio currently and even if it was up around 20-25%, I can't see it being a problem. Have done it myself on many occasions, albeit a different arrangement to Vaygor's. I borrow against "excess" equity in rental properties to invest in shares.
Have you ever had a mortgage on a house ? Did you sleep at night or did you stay awake worrying about its value dropping below your mortgage balance ? Myself, I can't really see the difference but of course, how high the gearing is, is the real issue with both types of investment.