Juggling with security - Mary Holm

Saturday 24 July 2004

Q. Unlike a lot of people we know in a similar position, my wife and I have not invested in real estate, apart from the house we live in.

Our house in Auckland is now worth about $350,000, and our equity in it is about $200,000.

If we want to make our money (our equity) work hard for us, and we don't choose to invest in real estate, what else could we invest in? <

By The Landlord

Would we be better off borrowing to invest rather than simply paying off the mortgage as soon as possible? Frankly, it's hard to get enthusiastic about paying off the mortgage.

And how willing will our bank be to lend us money to invest in assets other than property?

We are both in our mid-30s and have two young children. Our combined income is over $100,000 a year.

A. That expression "getting your equity to work hard for you" - often used by property sales people pushing rentals or people justifying their property investments - always makes me wonder.

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