Investor appetite for margin loans took a considerable hit following the GFC – and it hasn't fully recovered. In fact, data from the Reserve Bank shows that the number of margin loan accounts and the total value of lending are both roughly 62% lower now than at their peak in December 2007.
That's not to say there aren't plenty of investors still utilising margin loans, though, as the latest figures show that there were 91,000 accounts and $15.8 billion in total loans in the September quarter of 2022.
For Glen Hare, financial adviser and co-founder of Fox & Hare Wealth, using a margin loan as part of an investment strategy is certainly worth investigating.
“I don't think there's any reason why you shouldn't at least consider margin lending, but
