Originally Posted by Unregistered

Dear SAHM,

Life is full of uncertainty, we all make our moves in life based on our risk assessment, given our circumstances. While it is understandable why you want to lever up and own a second property, you must weigh the various possible scenarios. If you are comfortable with the worst case scenario, then you can make you move.

What is you worst case scenario:

You lever up to 80% debt, based on the CURRENT value of your landed, and you use the home equity loan to buy another landed or stocks. You base your ability to service your mortgage based on you husband's income. In the worst case, your current home value drop by 40%, your second property value dropped by 40% or your stocks dropped by 50% and your husband lose his job, you have no tenant for your second landed. If you are still ok with this scenario, then you can do whatever you like.

Take care dear.