Redeploying 500k equity vs Low 500k mortgage rate

[Peter Morgan]

Hello,

Since both refinancing and HELOC are both expensive at this time. What would you advise to someone who has 500k equity (post taxes and fees) and 500k with a low interest rate of 2.5?

Is it possible to redeploy 500k in another investment including Syndication to substantially offset with much better returns the advantages of a low 2.5 interest rate? Appreciate your inputs on this.

Thanks 

[Jay Thomas]

When considering whether to redeploy your equity or stick with a low-interest mortgage, it boils down to your unique situation, risk tolerance, and investment objectives. If you opt to redeploy equity, you could potentially earn higher returns and diversify your portfolio, accompanied by tax benefits. However, this choice involves the risk of capital loss, potential liquidity challenges, and increased time commitments. On the flip side, keeping a low-interest mortgage provides advantages like low-cost leverage, a predictable income stream, and potential equity growth. Yet, you might miss out on other investment opportunities. Syndication, pooling funds for real estate investment, is an option with benefits like diversification but comes with risks like illiquidity and reliance on the syndicator's expertise. In the end, your decision should align with your unique circumstances and financial goals.