Re: INVESTING
People borrow to invest all the time, how many investors buy investment properties entirely for cash? The vast majority of investment properties have mortgages.
Borrowing to invest in shares is a different matter, but if you look objectively at it why should it be any different? Shares are more volatile? Probably, but share dividends can be less volatile than rent, so there's two sides to the story.
Yield from renting a property can be as low as 2% and up to 7%, you may be able to get more but with prices like they are it'll be difficult.
You can get similar dividend yields and better from shares. So if you're prepared to borrow to buy to let, why not borrow for shares. As long as the yield covers the interest on the borrowings you're coming out ahead.
A problem arises when people borrow to buy into products that don't pay dividends e.g. trackers, so you can't bank on any particular return. If you're going to borrow to invest it's more important than ever that you understand the investment, and to be honest I can't understand most trackers so.....
-Rd