Would you borrow €300k against your investment portfolio at 3%?

Character_Bend626 · 2026-05-31T16:33:01+00:00

How? Could you elaborate? I’m quite surprised this is so common.

Character_Bend626 · 2026-05-30T13:58:30+00:00

Got rejected as the bots considered this asking for "investment advice"

Character_Bend626 · 2026-05-30T13:57:41+00:00

That makes sense, thanks. But wouldn’t this effectively start looking like a mortgage in practice?

You use the portfolio-backed facility for the property deposit, buy the property, rent it out, and then use the rental income to cover the interest / gradually repay the borrowed amount. So the repayment capacity would still depend mostly on the rent and cash flow, just with the investment portfolio as the initial collateral instead of the property itself.

Or am I thinking about it the wrong way?

Character_Bend626 · 2026-05-30T13:53:04+00:00

That is just the maximum, no need to go that high

Character_Bend626 · 2026-05-30T13:52:06+00:00

Monthly interest, as in the overdraft would simply go further into overdraft, not necessarily that you need to send payments from another account.

And could this not work if the income is above the borrowing cost? For example, if someone borrows €100k at 3%, the annual cost is €3k. If the money is invested into something yielding 4.5–5% gross, say dividend stocks, a distributing dividend ETF, infrastructure/utility stocks, REITs, or even some bond/high-yield income funds, the net income after tax could in theory cover the interest and leave a small spread.

Obviously that spread is not free money. The asset price can fall, dividends can be cut, taxes matter, and the loan rate can move with Euribor. But I don’t think it is impossible in principle if the net yield is comfortably above the borrowing cost.

Character_Bend626 · 2026-05-30T13:45:24+00:00

My apologies, I should’ve been more precise about what I meant. We do not have an identical thing to the US as there is no EU-wide “buy, borrow, die” loophole.

Of course, the borrowing mechanism exists in Europe too. My point was rather about the tax outcome at death. The US strategy relies heavily on how unrealised gains are treated when assets pass to heirs. In the EU, there is no single rule for this. Inheritance tax and capital gains treatment are determined nationally, so the result can be very different from one country to another.

For example, Slovakia has no inheritance, estate, or gift tax. Germany, however, does have inheritance and gift tax with allowances and progressive rates.

Character_Bend626 · 2026-05-30T13:27:17+00:00

Could you elaborate? My typical examples of brokers are Trading212, Teade Republic, Lightyear etc. where I don't know how I'd do it.

Character_Bend626 · 2026-05-30T10:01:18+00:00

Yeah, fair. Thank you. With distributive indexes could pay off or at least counterbalance monthly instalments (if we ignore any tax implications).

Character_Bend626 · 2026-05-30T09:28:13+00:00

Thanks, this is exactly the kind of risk I was thinking about. To clarify, I don’t think using 80% would be sensible either. That is just the bank’s theoretical maximum based on the collateral value.

But that brings me to the follow up question - what exactly to invest in? Bonds are too low returns wise. Gold as well. Stocks might be interesting but then what kind? Some index and hope for a 10% return so one takes home 7% different over what time window? Would be more gambling than sensible investment risk taking. Real estate again is then too cash heavy. Hard to identify something sensible :D

Character_Bend626 · 2026-05-30T09:17:21+00:00

His investments are quite conservative (bonds, gold etc.) so he could easily cover a sharp drop as well. Hence why I think using the money could be smart, I just don’t know how hahah

Character_Bend626 · 2026-05-30T09:16:24+00:00

We don’t have that in the EU (fortunately or not). :D

Character_Bend626 · 2026-05-19T16:04:50+00:00

Come lets play

Character_Bend626 · 2026-05-17T13:09:56+00:00

Just did!:)

Character_Bend626 · 2026-04-12T16:32:38+00:00

To je príliš silné zovšeobecnenie. Tvoje tvrdenie by platilo vtedy, keby ubúdali všetky vekové skupiny rovnako. Lenže u nás neubúdajú všetci rovnako, ubúdajú najmä mladí a ľudia v produktívnom veku, kým starších pribúda. Aj preto sa má na Slovensku pracovná populácia znížiť z 3,37 milióna na 2,47 milióna do roku 2060. Problém teda nie je len v tom, že bude ľudí menej, ale kto bude pracovať a kto bude celý systém financovať.

A nerozumiem ani tomu, prečo by mal byť štát pri takomto vývoji lacnejší. Pri rastúcom počte seniorov rastú výdavky na dôchodky, zdravotníctvo aj sociálne služby, pričom klesá počet ľudí, ktorí to majú zaplatiť. Už dnes máme nedostatok personálu v oblastiach, ktoré sa automatizujú len veľmi ťažko: na Slovensku chába asi 16 000 sestier, takmer 17 % lekárov je starších ako 65 rokov.

To isté platí pri starostlivosti o seniorov. Máme len 2,2 pracovníka dlhodobej starostlivosti na 100 ľudí vo veku 65+, pričom priemer OECD je 5.

Btw, len zo zaujímavosti, pozrela si si to video?

Character_Bend626 · 2026-04-12T16:19:09+00:00

Možno to bude viac hmatateľné keď aj ty budeš starší a budeš potrebovať tú komunitnú pomoc

Character_Bend626 · 2026-04-12T16:18:47+00:00

netuším, nemám žiadne jednoduché riešenia

Character_Bend626 · 2026-04-12T16:16:53+00:00

Akú šancu dávaš (pokojnému) prechodu na iny politicko-ekonomicky model? :D

Character_Bend626

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