You're playing with fire. You assume prices remain or rise. You assume your REITs will the same or rise and give you regular dividends. If the market crash, you will lose your home and will be begging on the streets. Safer for you to sell, cash out and downgrade. You have not experienced the worst. Banks just love idiots.
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Originally Posted by Unregistered
Actually you don't need to sell your home. I live in my $8m home which I bought for $2+m and which is paid off when I retired. I have borrowed about $4m from a bank to invest in REITS collateralized by the home at about 1% and get about $250K a year in dividends. I continue to live in the home, which continues to appreciate. The bank will lend me more, but I think $250K is enough to live on and why be greedy. I doubt housing prices with halve and the banker tells me that the house will have to fall significantly below $4m before they come after me to top up. My only issue currently is that the garden and the house require maintenance so I can't go on holiday for too long.
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