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So can debt recycling usage be summarized as definitely do it if you have a PPOR mortgage and tend to stay put for decades and you have inclination to invest in shares/ETFs.. Pay attention if there is an intention to turn property soon into a rental due to loss of interest tax deductibility on the rental??
Thanks Peter and thanks for the question. So long as not going to be turned into IP, I'd think of it as invest (debt recycled) vs mortgage (or offset). With a long term approach it'd be a strong consideration to be in the mix. Not definites in investing unfortunately but hopefully historical examples informative, of course future could be worse or better or likely in between. I didn't mention but if to be turned into IP, an option to get similar outcome could be to cash out equity and keep the funds you planned to recycle in the offset so net debt unchanged from what it would have been. This however has the disadvantage that it's likely going to attract a higher interest rate as would require a new application where purpose (investing) would be required to be disclosed.
Discover how to pay off your home loan and get to financial freedom as soon as possible!
Link: myworkspace542d9.myclickfunnels.com/debt-destroyer-program
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So can debt recycling usage be summarized as definitely do it if you have a PPOR mortgage and tend to stay put for decades and you have inclination to invest in shares/ETFs.. Pay attention if there is an intention to turn property soon into a rental due to loss of interest tax deductibility on the rental??
Thanks Peter and thanks for the question. So long as not going to be turned into IP, I'd think of it as invest (debt recycled) vs mortgage (or offset). With a long term approach it'd be a strong consideration to be in the mix. Not definites in investing unfortunately but hopefully historical examples informative, of course future could be worse or better or likely in between.
I didn't mention but if to be turned into IP, an option to get similar outcome could be to cash out equity and keep the funds you planned to recycle in the offset so net debt unchanged from what it would have been. This however has the disadvantage that it's likely going to attract a higher interest rate as would require a new application where purpose (investing) would be required to be disclosed.