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Positive Gearing: a different kind, no margin calls

  •   15 February 2018
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Positive Gearing: a different kind, with no margin calls
Borrowing to invest is a popular strategy for building wealth in Australia. Record low interest rates and legislative changes making superannuation less attractive have increased enthusiasm for borrowing to invest, but margin lending and the potential for margin calls are still a scary prospect for many. For those who can’t afford or don’t wish to buy property, a new way of gearing reduces the stress of borrowing to invest.

 

Note: There are risks associated with borrowing to invest. Some of these include, but are not limited to, rising interest rates, changes in taxation law and movements in the prices of your investments which may have an effect on your financial position. It’s recommended you speak to a financial adviser before deciding to invest. Gearing will increase both returns and losses compared with an ungeared equivalent investment.

  •   15 February 2018
  •      
  •   

 

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