Leveraging an asset?

A

alri

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Hi,I have a rental property in a fairly good Dublin location with a longterm tennant & no mortage,my question is should I look to release some of the value of the property & invest in other options ,possibly another property?
Appreciate that this could be a simple NO but just want to explore some options.
Thanks.
 
Just remember what leveraging is about: trying to increase the return on your capital by taking on an increased risk.

You have one well-performing investment with, apparently, no great exposure. Many people would be happy with that.

Do you need to increase your income? Or do you simply want an adventure?
 
Given the negative effects of equity releases suffered by all banks in he past 6/7 years, this proposition would be a non runner for the main commercial banks. It's always a high risk to borrow money and invest it looking for a more favourable rerturn. Practicaliteis would mean that in order to achieve a higher level of return than the interest rate on the loan any investment would need to be at the high risk level also. Given the likelihood of interest rates increasing in the medium term, I would strongly advise you not to consider this as a wise strategy. Even if you could find a bank to finance the scheme!
 
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