When buying shares, what advantages does margin lending have over gearing a property?
Generally, home equity loans will have lower interest rates than margin loan interest rates. However, you will need sufficient equity in your home to qualify for a home equity loan. Gearing a portfolio of shares and managed funds provides you with a liquid and flexible investment. When investing in the sharemarket you may diversify your investment, liquidate your investment quickly, average your purchasing prices over time and obtain dividend income and franking credits.
