“Even if you only get a rate of return of around 7%, every dollar you invest is going to double in 10 years”
♫
Said on Tony Robbins Podcast Daily
Stuart Weems · The Money Puzzle · Investing in your home versus building a share portfolio
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suggested borrowing at 6.5% interest and only investing in shares if expected net-of-tax return exceeds that rate
6.5% interest rate
“Even if you only get a rate of return of around 7%, every dollar you invest is going to double in 10 years”
“If the rates are up 50%, we'll go interest only for five years. And basically hope in five years when the loan expires, rates will be back”
“I just got an unconditional approval for a loan and signed loan docs on Saturday. It's a $6.5 million loan and it was split into two portions, one at 6.14% interest only investment and one at 6.34%. So we guarantee our rates at 6.1%.”
“Someone who chooses interest-only on the investment split usually maximises the deductible interest and directs all surplus… towards a non-deductible home loan”
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