> They definitely shouldn't.
Never give absolute financial advice to anyone who's situation you don't fully understand.
Nah, I’m pretty comfortable that 99.99999% of people should not take a margin loan to buy a house. Close enough for me.
A fair number of people do use margin for down payments until they can sell assets to cover the margin.
It's not uncommon when people buy deals while traveling or in hot markets.
See also Mr Money Mustache's articles on this topic. He assuredly is not Bezosesque.
Here's the Mr. Money Mustache article I referenced: https://www.mrmoneymustache.com/2021/01/29/margin-loan-ibkr-...
Another very rational reason for such a margin loan for a home down payment is if the stock you wanted to sell hadn't been held for a year and therefore its sale would not yet qualify for long-term capital gains rates.
You might choose to pay margin interest for up to a year so that the stock sales become taxed at the much lower long-term capital gains rates instead of like income.
That might make sense for someone in the 24% federal bracket which ends at just under $200K of annual income, depending upon how much longer one needs to hold the position to achieve the more favorable taxation. Certainly far below the yacht-owning bracket.