Quote:
Originally Posted by Red
Real estate is a great way to invest, but sadly HELOCs are mostly spent on new vehicles, vacations and other luxuries. People keep living in the same houses, have the same jobs etc, but were just preapproved for an interest only, 6 figure loan. They will spend money they don't have and that's never good. You and I agree on this, but a lot of people miss the point that they will have to pay it off at some point. Oh well, not my money :-)
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Well thats the fault of the individual who borrowed the money. I know I see a lot of people driving around St.Albert in nice fancy new $60k plus SUV's, and going on fantastic vacations every year. Some of them can afford this lifestyle and others are no doubt living on maxed out credit to do it.
But for those who know how to use their money I think theres some nice oppurtunities out there and tapping into your Home equity can give someone access to the capital they maybe haven't had to beef up their investment portfolio. For instance if you have a huge RRSP carry overs would it be a bad idea to get a HELOC and max up your contribution than take your tax refund and either reinvest it, or use it to pay off part of the loan?