Hi all,
With some shares returning a grossed up yield of around 8 to 9% at the moment (like the major banks), I'm just wondering if they're just as good an investment to make right now as say buying a positive cash flow property.
If you take out a LOC to purchase shares at around a 6% interest rate (for the loan), then really you've got extra cash in hand at the end of each year, just like having purchsed a positive cash flow property (except minus the hassles that can go along with property investment). Can anyone see any flaws in this?
Cheers
John
With some shares returning a grossed up yield of around 8 to 9% at the moment (like the major banks), I'm just wondering if they're just as good an investment to make right now as say buying a positive cash flow property.
If you take out a LOC to purchase shares at around a 6% interest rate (for the loan), then really you've got extra cash in hand at the end of each year, just like having purchsed a positive cash flow property (except minus the hassles that can go along with property investment). Can anyone see any flaws in this?
Cheers
John