TheBigShort
Registered User
- Messages
- 2,789
OK, let's make this very simple and remove Bitcoin from the picture.
Please tell me the difference between the following:
Joe
Family home worth €500k
Mortgage: €300k @ 3.5% variable interest rate
Diversified portfolio of shares: €300k
Mary
Family home worth €500k
Mortgage: €300k @ 3.5% variable interest rate
Diversified portfolio of shares: €300k
Brendan
I cant see any difference other than one is a boy, the other a girl.
Yesterday Joe had a house worth €500k and a mortgage of €300k and no shares.
Yesterday Mary had a house worth €500k with no mortgage and no shares.
Today, Joe inherited €300k worth of shares from his father.
Today Mary remortgaged her home for €300k to buy shares.
Read the posts again BS - Brendan played a little trick on you.I think that the previous post there was a typo?
Read the posts again BS - Brendan played a little trick on you.
The only difference is that you were subsequently told that Mary remortgaged her home to purchase the shares whereas Joe already had a mortgage outstanding in the same amount.
Nobody suggested that Joe remortgaged his home.Oh please, this is getting absurd. Yes, their financial positions are now the same. But by no stretch of the imagination could you class Joe's €300k inheritance in shares as 're-mortgaging his home'.
Nobody suggested that Joe remortgaged his home.
The point that we have been making - and you have been disputing - is that investing while carrying mortgage debt is no different financially to remortgaging a property to make those investments.
Surely you can see that now?
So you are now arguing that if you continue to hold a portfolio of shares that you inherited you are not invested in that share portfolio. Really?!But Joe didnt invest - he inherited.
You (unwittingly) agreed that Joe and Mary were in precisely the same financial position even though Joe already had a mortgage whereas Mary remortgaged her home.
When did I ever disagree?
So you are now arguing that if you continue to hold a portfolio of shares that you inherited you are not invested in that share portfolio. Really
There is no difference (material or otherwise) in the respective financial
positions of Joe and Mary in Brendan's example - you said so yourself in so many words.
How would holding a portfolio of shares "constitute a re-mortgaging of my home"? Frankly, I don't know what that even means.No, not at all. Im saying that by being invested in a portfolio of shares that you inherited, does not constitute in any way shape or form, a re-mortgaging of your home.
Better luck squeezing water!!!!I suspect that you can see that now but are reluctant to acknowledge your mistake.
How would holding a portfolio of shares "constitute a re-mortgaging of my home"? Frankly, I don't know what that even means.
Im saying that by being invested in a portfolio of shares that you inherited, does not constitute in any way shape or form
with no additional net benefit or loss.Mary remortgaged her property to make her investments.
When you talk about the percentage of crypto as an asset in your overall portfolio, do you calculate it considering your property equity or property total value?
Let's say your balance sheet is something like this:
Family home: €500k
Mortgage: (€200k)
Investment properties: €400k
Mortgages: (€200k)
Gold: €100k
Bitcoin: €200k
Total assets: €1.2m
Total borrowings: 0.4k
Net assets: €800k
Is your question - should I have 10% of €1.2m or of €800k in Bitcoin or Gold?
OK, let me rephrase the question, which might help you answer it
Let's say your balance sheet is something like this:
Family home: €500k
Mortgage: nil
Investment properties: €400k
Mortgages: (€200k)
Gold: €100k
Total assets: €1.0m
Total borrowings: €0.2k
Net assets: €800k
Your net assets are the same.
Would you remortgage your home to buy €200k worth of Bitcoin?
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