• Last Updated:
  • Oct 4th, 2020 7:38 pm
Tags:
Deal Addict
User avatar
Feb 23, 2005
2144 posts
2772 upvotes
Toronto
bobbings wrote: That’s your risk tolerance and you seem more risk averse than others but that’s fine. Some people will borrow to fund investments in risky stocks or RE or anything that could potentially hit a home run. Imagine going all out on Tesla stocks before the surge this year.

Remember, there’s no right or wrong to how people spend their money or what they do with the money they borrow.
yes on this forum i am giving my recommendation based on my personal situation as OP didn't describe too much. while there are possibilities of making big bucks leveraging on your home, its not worth it for me with a 2 yr old. there are many success stories in the market... like zoom, tesla, bitcoin, weed, apple... but there are also many that lost a lot during crashes as recent as 10 yrs ago.

if i was single, no kids, sure, i'd risk more. but having a home for wife and kid is more important to me than driving a bmw. but from a financial planning perspective, I can't imagine that would be a thing to recommend using heloc for stocks.
Deal Addict
User avatar
Feb 23, 2005
2144 posts
2772 upvotes
Toronto
Carymay wrote: In my area basic starter houses start at 800 and up for townhouses....million dollars won't even cut it for a basic stand alone house.

I am a home owner. My house is already paid for...a long time ago in fact....I'm just more concerned about my soon to be adult children and how they will be able to afford anything resembling a house......

And yes devalue currency and savings is pretty much on my mind as I will be soon thinking about retirement.
will be tough, but can be done. maybe they become a dentist............. havent' see a poor dentist yet. lol
Member
User avatar
Apr 19, 2016
285 posts
258 upvotes
GTA, ontario
housing will NEVER go down in any meaningful way. too much money floating around. only issue now is the govt stepping in and adding new taxes to punish "lucky" homeowners and pay for all that money floating around. it'll start at 1% tax on cap gains and quickly go up from there. they need the money and they will get it lol.
--- +++ There is a 255 character limit in signature +++ ---

Help is available! Life is worth it. I love you, no matter what.
Canada Suicide Prevention Service: 833-456-4566
USA: 800-273-8255
Sr. Member
Jun 14, 2018
641 posts
644 upvotes
sonyminidiscman wrote: that depends on what you call investments. investing in your business or investing in stocks are 2 different thing. wouldn't recommend anything to take heloc to buy stocks.
I see no issues borrowing money at 2% interest to invest in a mutual fund or ETF that returns 6-8% per year, on average. Yes, there are some risks that the market goes down, but if you have a long enough investment horizon, the ups will almost always out-weigh the downs. So in that sense, there's not actually that much risk. But if doing this will end up keeping you up at night, then of course, you shouldn't do it, but if you understand finance, you should be confident in the upside.
Deal Addict
User avatar
Feb 23, 2005
2144 posts
2772 upvotes
Toronto
thank89you wrote: housing will NEVER go down in any meaningful way. too much money floating around. only issue now is the govt stepping in and adding new taxes to punish "lucky" homeowners and pay for all that money floating around. it'll start at 1% tax on cap gains and quickly go up from there. they need the money and they will get it lol.
yep. 50 billion handed out this year. 50 BILLION. created out of thin air. well, not thin air but your pocket and mine. if that doesn't devalue our cash, I dont' know what will.

Top