Quote:
Originally Posted by KTown
Really, this doesn't make sense.
If you are taking it out to buy a nicer car, then I agree it is stupid, but if you are borrowing for an investment then it's the way to go and get the downpayment you need for it. The interest rates on homeowner LOCs are so low that it's almost like getting free money.
You got to spend money to make money. I took equity out of my house and bought 4 houses in Regina 5 years ago. I put 100K down on those properties and if I sold those houses today I'd walk out with over 250 - 300K profit.
Back to the original poster, I'd take a year off and enjoy your life you are only 37, and as far as we know we only live once. Go on some of those high priced trips you always dreamed about.
Then when you get back start looking at long term investments for your future.
Make sure you start taking advantage of your TFSA if you already haven't. You are going to have some play money for investments. Any profit you make off of those investments you will get to keep tax free.
Congrats!
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Fair enough, but how many people took out loans based on the equity of their house only to see the market collapse and end up with nothing... quite a lot.
It can make sense if you believe the market will be steady... but that just has not been the case the past 5 years.