Weekend Reading – Borrowing to invest, rising house prices and more
Welcome to another Weekend Reading edition!
As part of this edition, a reminder: you have a few more hours to enter this giveaway on my site. 🙂
Enjoy the articles that follow and have a great weekend.
A Financial Post article said there are times to borrow to invest, like now. I agree but ONLY if you have a healthy income surplus every month and very little debt. Otherwise, I feel this is a form of gambling since so many factors associated with leveraged investing are out of your control.
I read house prices will rise another 5% this year. I can’t imagine that will occur everywhere. Who on earth is buying all these homes at these prices anyhow?
Larry MacDonald profiled this investor who invests in companies people hate.
Dan Bortolotti encourages the bond bears to admit they were wrong.
A Wealth of Common Sense said there is no perfect portfolio, only in hindsight there is.
Jason Heath provided some advice to this couple regarding investment fees.
Mark
Thanks for the good reads this week. Have a great weekend mate!
Thanks for the mention, Mark. I’m with you on the use of leverage – too much debt right now, but something I’d consider given the right circumstances.
Yeah, the Smith Manoeuvre and other financial tools are not for me right now. If and when I have a low debt load and interest rates are low, along with many other assets built up outside my home, I will consider it.
Mark,
I would love to know how to travel for less. For people who live up north, there are not many deal options. The good thing is that new International airport terminal opened recently with direct flights to Las Vegas and Mexico
Inderpreet
Thanks for the inclusion, glad you saw the subtle mention of the key to my trick, have a great weekend.
Yes, it was surprising you talked about killing debt on your site 🙂
I was wondering when we’d start seeing more articles about the wonders of leverage. We always see them after the market has run up. Of course, the right time for leverage was back in 2009, not that I could know it at the time. Thanks for the mention.
You’re right Michael, and we’re seeing a few (more articles) now. Potentially a nice blogpost topic. Personally, I won’t borrow to invest until my mortgage debt is zero or very close to it. I just don’t see the point of taking on more debt when I already have $200k of it.
Borrowing to invest? It’s horrible. It’s better if you invest using the money that you work for. But I known some people still doing it. And they find it hard to pay their debts.
I just don’t get it Hannah, not for me!
Borrowing to invest is alright in certain market conditions but with things getting frothy I wouldnt dare use my leverage. I would rather wait for average dividend yields to raise above margin rates before I think about it.
We have too much debt, i.e., mortgage, so I borrowing to invest for me is a no-no until that is paid off.
Mark,
Thanks for sharing! Really appreciate it.
Borrowing to invest? I know margin works for some, but I like to do it the old-fashioned way. Nobody ever went bankrupt not owing anyone anything. My money is mine alone. 🙂
Have a great weekend!
Best wishes.
Well said. Happy to link to your articles. Enjoy your weekend Jason!