Banks won’t lend a large amount of money (1M+) at good rates for risky investment.
[Hypothetical scenario] What would be the downsides of:
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Borrowing money to buy a $1M house with an interest-rate only loan.
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Sell the house a few weeks/months later for ~90% of that amount
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Use the cash to buy cryptocurrency/high yield bonds/some other risky investment.
4.a Pay off the loan if the investment if profitable and keep the rest of the profits
4.b Declare personal bankruptcy if the investment is not profitable
Assuming the borrower is:
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a minimalist with little to no physical asset. Enough fiat for a house deposit.
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6 figures job in the tech sector
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has a good credit score and has never filed for bankruptcy
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has multiple passports in top tier countries and don’t mind changing countries
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is not attached to the idea of ever owning a house under his own name
Submitted March 27, 2019 at 01:59AM by zhaitan342 https://ift.tt/2CFoPM2
