Extremely insightful and objective take on this strategy. Thank you!
@MS-up1rc
11 ай бұрын
I've a confusion - after tax cost of borrowing should be higher than after tax return on investment or before tax return on investment for the strategy to be profitable?
@brandenmurphy1837
8 ай бұрын
I think its not actually accurate what you said about needing monthly gains to cover the accumulated loan interest... A key component of the SM is that you actually use the new LoC/equity from your regular mortgage payment to cover the interest and then invest the balance... Making sure your investment performs well is important but not for cashflow, you mainly want to just make sure the investment value can remain above or equal to the LoC utilized at the end... But cashflow is only a problem if the principal portion of your mortgage becomes less than the accumulated monthly LoC interest
@k.w5804
2 ай бұрын
With abundant loc and investment loan available, SM using equity accumulated from mortgage payment is kinda outdated though.
@RouRoro
8 ай бұрын
What if I wanna sell the property? Do I sell all my stocks and pay capital gain taxes?
@holdencawffle626
7 ай бұрын
Yes. At your ordinary cap gains rate
@RouRoro
8 ай бұрын
What if I wanna sell the property? Do I sell all my stocks and pay capital gain taxes?
@benjamins8082
Ай бұрын
I love learning so much on financial topics.
@CreativeBotSam
5 ай бұрын
How do you get the mortgage paid off if every time you make a payment you go and borrow the same amount? Do you cash out all the investments at some point to pay it off?
Пікірлер: 9