Margin Loan Investing Strategy Australia - Conservative Leverage For Long Term Passive Investing

I was able to increase my returns by over 59% in 1 month using this conservative margin loan investing strategy, my strategy for conservative leverage over the long term for passive investing Australia. In this video I'll give you guys a crash course on what margin lending is, the benefits of a margin loan for investing (I’m going to go this in a lot of detail - there’s actually some amazing tax benefits which I’ll also go through with you), the risks associated with margin loans (as there is risk even with my conservative strategy and you need to be aware of them), how you can actually invest with margin in Australia and finally I’ll breakdown my conservative margin investing strategy for long term growth.

Low fee stock brokerages (my referral links):
- Pearler AUS Shares (1 FREE TRADE):

What is Margin Lending?
So for you guys who know nothing about margin loans or leverage investing. Margin loans are essentially borrowing money to invest. Very similar to how you get a mortgage to buy a property, where your property acts as security to back the loan and effectively leverage your initial deposit. With a margin loan your shares and investments act as security and leverage that let you borrow money to buy more shares. At a fundamental level a margin loan is a type of secured loan.

Why use a margin loan and what are the benefits of a margin loan?
There’s really 3 key reasons why I use margin to invest in Australia. The tax deduction benefit, the magnified returns and the fact that they are interest only.

Risks of margin investing
Magnified losses, Margin calls, and interest rate risk

Margin loan comparison Australia

[jedflett]

Liked and subscribed 2 minutes in! Cheers for this video, and explaining things so clearly. Legend!

[Mick_Unfiltered]

You are really good at explaining things clearly bro, found this video way more helpful than many others! Earned my sub!

[jamesnair]

Great video and summary. The months of June 2020 to July 2020 are far from a typical example of stock performance though, hahaha, straight after the frenzied market drop following the early days of the pandemic 😅

Nice to see Australian focussed content. A video on Leveraged margin lending company would be great.

[yugantarfulecha]

hey man, could you please do a quick vid covering different margin loan providers in Aus and you preferred provider?

[BrettsBlueDepths]

Great video Michael. I’ve been watching Graham Stephen for the last year as I think he has good advice, but lacks Aussie context. So great to discover your channel with helpful practical local examples. Keep it up.

[MBAutomation]

Thanks for reminding for the like botton. I always forget.
Good contents Michael. Keep it up.

[jhoelandmaypa]

Would be very interested on a video on how to invest for kids in Australia?

[jaykedonnelly]

Very informative video, I learnt a lot! If I could like this video more than once I would.

[Unimax]

Fantastic sharing Michael! This is one of the most informational video on Margin Loan Investing. Liked and subscribed!

[rossmiller]

Hi Michael. Great video. How'd you go with the spreadsheet?

[TassieHoHoHo]

Love it brother... wonder if you might do an update for October and include any drop that you experienced

[Awsomegirl]

Hi Michael very good info I’ve been using margin loan for years but recently only very conservative as I believe it needs to be used correctly but I always add money to it every week to keep it topped up by the way I find your videos very helpful I’ve been investing since the early 2000 and since I discovered you posts it’s been very helpful

[MamaliFeshFesh]

Awesome video, keep up the good work man.

[lelum]

Really great video and you`re a naturally born teacher with great explanation skills :)

[tyronebell]

deserves a follow mate my portfolio just hit 100Kn happy investing

[hnwtk]

Thank you so much your videos are so helpful. Subscribed

[hirawan]

Great video mate, love your youtube channel. Did you know anything about NAB equity builder? I read on their website that they don't do margin call but P+I payment. Thinking about this, but still a bit nervous that this could amplify the loss as well.

[Siam]

Once again great video, yes would love a copy of the spreadsheet. A google sheet is an easy way to share!

[andream]

Hi Michael, 3 years after making this video, would you suggest a margin loan given the current interest rate?

[fraygill]

Excellent video. Very informative. Lets me know if you’ve shared the excel.