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ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

July 7, 2017 | Canadians Using Homes as ATMs

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

We have encountered several people in the past year who have been gutting the equity in their homes via mortgages and ‘Home Equity Lines of Credit’ to speculate on other properties and security portfolios. Often they are doing so on the ‘advice’ of their bankers, mortgage brokers, realtors and stockbrokers, financial planners’and even accountants. Others have taken How to get rich seminars with HGTV celebrities like Scott McGillivray (similar to the Trump ‘University’ courses that people were paying thousands to take a few years back).  Sales puff designed to profit off the gullible.

All of this great for enriching those collecting fees and commissions on the transactions, and most likely to be financially devastating for those doing the buying and so called investing.  It has also set up for the next liquidation sale coming, where present holders become stressed sellers and those with cash can pick up assets for pennies on the dollar.  This has been an extra long up cycle, so we should expect the correction phase to be equal and opposite in the other direction.  Lots of good insights in this clip.

Scott Terrio, estate administrator at Cooper and Company, joins House Money to discuss the dangers people can get themselves into when usnig HELOCs.Here is a direct video link.

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July 7th, 2017

Posted In: Juggling Dynamite

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