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Message: House Positions - May 20 to June 8

San City IF YOUR BRAVE

posted on Jun 08, 2008 06:35PM

..with today's interest rates as low as they are ,one may consider using a line of credit backed by their house,this interest occurred is tax deductible as the line of credit is for investment purposes.These moneys can be put to work to earn extra cash as your house sits idle.The cost after tax to borrow is roughly 2.5% which is cheap money to borrow,even if you purchase a corporate bond paying 10 % your up a few points verses just doing maintenance on the old place.Remember if you do take advantage of this cheap money ,have your bank issue you a letter stating that the funds are for investment purposes as this will satisfy Revenue Canada if you get audited. Never a sure gamble but San could pay a higher return.Gold up nicely tonight.Traps7

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