Can I leverage my HELOC?
I own a 1M CAD condo in Vancouver. I’m thinking to get a HELOC below 3% right now.
Then I’m thinking to deposit it into a brokerage MARGIN account (margin cost about 2%)
Then I’m thinking to buy a stable REIT with a monthly payout which generates 6-8% per year.
What are the flaws in my line of thinking here? Can I surf the difference in the interest?
I think I can get about 1.2M in buying power on Margin which will bring me about
NWH.UN pays 0.06 so 1.2m / 13 * 0.06 = $5,538 per month
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July 21, 2021 at 04:19PM