hi i have a margin loan currently geared at 60%. all the stocks have security ratio of 75%. if i wanted to buy more shares without increasing my gearing ratio. Is it possible to apply for a totally separate personal loan and put this into my margin account, and buy shares with that? will the interest on the personal loan be tax deductible considering that it will be fully used for investment purposes?
Yes Yes (if you were silly enough you could buy shares on a credit card and then claim the interest as deductable). The question you should ask is if this is a good idea ... My answer would be personally I wouldn't do it Regards, Jason
thanks for that...i know its not ideal but its not too bad. only borrowing 5k and will be able to pay back within 2 months easily. so interest will be less then $100 if i dont do it this way, and the shares go up then it will end up costing me more. i know they might not go up or be steady...but i think there will be way bigger diff than $100 in 2 months
