Asset Allocation Calculation – Take Leverage Into Consideration?

Your asset allocation should be 50% real estate 50% equity. By mortgaging you’ve used leverage to increase the risk-return of the real estate portion.

So your real estate risk is now higher than say if you bought a $50K equivalent property, but it’s still 50%.

Ok, that’s complicated. I would not do something like that because the debt is too big. I prefer not to make any investments from the money I don’t own.

I think it’s much safer and more reliable not to depend on a bank or any other financial institution. I also regularly cooperate with experienced brokers from Mortgage Broker Scarborough to ensure I am going in the right direction. I also do have some experience, but they know the market better than I and I prefer to pay a little money and be sure I make the right choice rather than lose peace of mind for a long time.