This is my first post, please be gentle.
I understand that some investors under some circumstances will borrow money to invest in the share market (margin lending), so clearly it must be profitable for at least some people to do so.
I believe that the interest rates on such loans will be higher than those one would pay when investing in property.
So what happens when you have income above and beyond what is required to pay off your mortage? Most people would make extra repayments as this is a low risk way of saving money, however if your home is your only asset, you run the risk of being wiped out if the housing market were to crash.
Assuming that a person was to do the required research and invest in the share market at a sensible way, would you theoretically be better off putting at least some of the funds set aside for extra repayments into a completely different area in order to balance out your risk? Especially if interest rates on the mortage were very low?