Quote:
Originally Posted by Unregistered
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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I'm not assuming anything but making a judgement. I've borrowed 50% of the value of my home. I judge that if the property market crashes by 50%, which looks unlikely, the bank won't make a margin call because it's still a $4m home and they are fully collateralized. REITS can rise or fall. Probably over the longer term because rentals increase due to inflation, REITS will rise in value. I feel perfectly safe even if the worst happens. Perhaps you can say something useful by coming up with the scenario where I am begging on the streets.