Positive gearing opportunities

the stockmarket is crashing (in case you were oblivious)

world property prices are crashing (even here, regardless of your denial)

There are shares like NAB now trading @ $20, yielding 14% (this is NOT to be taken as advice, example only)

maybe they will get cheaper, maybe they wont…….nobody knows. but regardless, its possible to positively gear these shares, in which case, who cares about the short term moves? do you worry about the value of a positively gearing property?

property is doomed. overnight bank lending rates went through the roof, that means our banks will be forced to raise rates regardless of what the RBA does.

now you may be asking: if bank rates go up, will you still be able to positively gear shares?

lets be clear here. its MORTGAGE rates that are going up, NOT margin loan rates (or any other rates charged for equity investing).

for CFDs, options, instalment warrants etc, rates are either RBA rate or RBA +X%. The RBA is likely to cut aggressively to counter the banks rate rises, thats likely to result in unchanged rates for mortgages. However for equity borrowing, rates will fall.

This means there should be a lot of positive gearing opportunities in equities coming up……..