I can’t believe I live in a world where this title starts to become a thing. Also at close to 2% interest, many mortgagors find this alluring.
If you’re gonna do it, do it right.
Interest costs on the portion of the home loan you use for investing in shares can be tax deductible. To make accounting easier, keep this portion separate.
Also you might want to consider shares with actual cashflow – dividends.
Scott Ellis, Investment Adviser at Hobson Wealth “I think in New Zealand, the NZX 50 is a fantastic place to start. There’s a lot of high quality businesses in that top 50 that are well-established with well-established cash flows, and they’re mature companies, so they’re willing and able to pay a regular tax-effective dividend to a New Zealand resident, so that’s a fantastic place to start, I would say.
“Overseas, you’re not gonna get the same tax benefits, but, you know, a lot of businesses, particularly in the US, are more growth orientated businesses, so they’re reinvesting their cashflow back into the business to grow, in a lot of the cases. So New Zealand if income is what you’re seeking. But overseas or US for capital growth, absolutely.”
Where do you go if you wanna buy shares directly?
There are newer entrants like Sharesies and more established ones like ASB Securities. But these platforms can mean no actual investment advice.
An investment adviser can also offer advice and facilitate direct share purchases. A managed fund is a great way to diversify your investment.
