🎁Get 15 FREE stocks + 180 days of free brokerage if you sign up to Moomoo & deposit $1 using the link below: j.moomoo.com/00AIEo Offer valid for a limited time. Steps: 1. Click the link above to sign up. 2. Once account is verified, download MooMoo App & deposit $1-5000 depending how many free shares you want. 3. Enjoy 6 months of free brokerage fees. 4. Profit! 💰

@nobodyreally0162

7 ай бұрын

I was told my my tax man this won’t work if you live in the home? But I’m sure you said you can do this while living in the home..? Which it it please? I live in Adelaide..

@Venkata_kumar_us

7 ай бұрын

Hi Bryan, Think there is a flaw. If you look at your video at 06:32 You make $2000 in dividends at 4%. However you pay an extra $2500 (5% interest on 50K) You are losing $500. I’d rather leave that $500 in the offset and pay off the principal rather than losing. Your strategy will work if it’s earning more than 5%. But hey in todays market you have to atleast make 6.34% to beat your mortgage interest rate.

@user-bf4ce9in6r

3 ай бұрын

can you do this with a investment property. What are the ways to reduce tax for an investment property?

@BryanInvest

3 ай бұрын

@@Venkata_kumar_us Hey mate, the 4% is just from dividends. You need to take into account share price appreciation as well. The stock market usually averages 8-10% per year in the long term. It's not guaranteed to continue of course but we investing in the hope it does. Plus you will get a tax credit on the interest rate since you borrowed to invest.

so good the only utube vid that I don't have to speed up the talking!

@BryanInvest

7 ай бұрын

Haha thanks! I also speed up KZread videos when watching.

1 Minute in and you've done an amazing job of giving a simple breakdown of the concept. Liked and subscribed for sure!

@BryanInvest

3 ай бұрын

Thanks for the support!

Have a thumbs up sandwich! Definitely given me food for thought! This is a much needed vid for Aussies!

Gold content! Thanks Bryan 💯🙏

Great video, well done man.

@BryanInvest

4 ай бұрын

Thanks mate 👊

sandwich time, thanks this explanation is simple and concise.

@BryanInvest

5 ай бұрын

Thanks Adam. That's what I like to hear 😄

Mate, you are a legend. Pure gold class information without the bs. Please don’t change.

@BryanInvest

2 ай бұрын

I appreciate that mate! Don’t worry, I’m all for the Aussie people. More videos coming soon 🫡

Great content and super helpful. Thank you Bryan!

@BryanInvest

5 күн бұрын

Awesome! Thank you ☺

Easy said than done ✅

Thanks Mate! :-) This is very helpful!

@BryanInvest

9 ай бұрын

Cheers!

loan sandwich, great info as always. Im keen to give this a go. Thanks Bryan. Great video as always

@BryanInvest

2 ай бұрын

Great to hear, Sheldon. Wish you all the best 😄

great Video, thanks

@BryanInvest

9 ай бұрын

Cheers Shannon 👍

Well sandwich it is 😊. Thanks for the genuine and useful tips.

@BryanInvest

5 ай бұрын

Thanks mate! Glad it helped you 😄

Sandwich, Thank you for an informative vid.

@BryanInvest

Ай бұрын

🫡

Sandwich! Thanks for this, found it very helpful

@BryanInvest

2 ай бұрын

Glad to hear! 🤝

sandwich! never knew this kind of thing existed. Thanks!

@BryanInvest

Ай бұрын

No worries!

Great video! (sandwich) .. thanks for laying this all out

@BryanInvest

2 ай бұрын

Cheers Vincent 🤝

I have watched this video and could not stop myself watching it again and again until I got better understanding. Especially for the people having very little knowledge in this field. Subscribed the channel

@BryanInvest

3 ай бұрын

That's great. Glad the video was helpful 👍

@jv-yw8xd

2 ай бұрын

Same!

🥪 very informative 👍🏻

@BryanInvest

8 ай бұрын

Thanks! You're making me hungry 🥪

What a good sandwich today. Thanks.

Subscribed to that sandwich. Cheers mate

@BryanInvest

3 ай бұрын

Welcome to the family! 💙

Sandwich! Thank you for sharing your knowledge, Bryan.

@BryanInvest

Ай бұрын

Thank you! 💙

I didn't understand the Sandwich part until the end. 😂 Great video. Thanks

Sandwich! Thanks for this awesome video. I definitely check all the boxes for someone who could debt recycle, and at first I was like 'jeez, why am I not doing this?' The 'not so fast' bit gave me some pause, definitely worth running the numbers first.

@BryanInvest

28 күн бұрын

I'm glad you paid attention to the 'not so fast' bit. Like most things in life, you need to make calculated decisions and not just jump right in!

Hi Bryan, thanks for the video which is better than a stake sandwhich. Do you think it is a good time to do a ''debt conversion'' this time of high interest rate for those in mortgage?

Sandwich. Great video ❤

@BryanInvest

4 ай бұрын

Thank you! ☺️

This is a great video, real informative and tells you how to use the system, my problem is Im too risk avert to try it, sandwich.

@BryanInvest

9 ай бұрын

Cheers mate. That’s fair enough. It’s not for everyone. It’s just another tool in the arsenal at the end of the day!

Sandwich 🥪 Subscribed great video ❤

@BryanInvest

28 күн бұрын

Cheers! Welcome to the family 😎

Sounds great, however trying me trying to explain this concept to my Bank would be impossible. I will watch a few more times to try to better understand, thank you. Great channel!

@BryanInvest

9 күн бұрын

Haha no problem mate. Speak to a loan manager at the bank, they should be aware of this.

Awesome...thank you Bryan... SANDWICH :)

@BryanInvest

5 ай бұрын

Cheers Adam 🥪

Hi, thank you for your video. Is there a way fo debt recycling for investment property with equity? Thanks!

Sanga! Great video ✌️

@BryanInvest

9 ай бұрын

Thanks mate 🥪

Thanks for the vid. For your second way of debt recycle, this means you pay less repayment compared to the first way (coz interest only loan is always higher than home loan rate) and it is not technically borrowing equity from the bank anymore but using your own cash. Is that right? Does this increate the home loan you paying for the original home loan given you are using the extra cash for investment instead of offsetting the home loan? Thanks

Hi @bryan, thanks for the video, very informative; how would this work if you are currently in a primary place of residence (for example 200k equity on 600k property and wanting to get a new loan to purchase a new primary place of residence (keeping the original property as the investment asset)

Sandwich! It’s great you have emphasised all is involved. It is not about magic!

@BryanInvest

2 ай бұрын

Thanks Debora. Yes, this is definitely not a magic pill.

Thank god you did reality check on options towards the end of your video. In theory yes, but with many changes post covid many people have had totally change money management. strategies.

@BryanInvest

9 ай бұрын

Absolutely. Debt recycling is great if you mean all the prerequisites but its definitely not for everyone.

Depending on your Debt-to-Income Ratio it's definitely worth it. However, with current interest rates and extra expenses, you'd better make sure your income can cover the cost of holding investment properties. Could you present a cost model with a timeframe for this exercise. A Gantt chart easily explains the step-by-step process.

You always give me new ideas , thanks mate . Sandwich 🥪 😅

@BryanInvest

9 ай бұрын

That's what I'm here for mate! 😎 how's the crop looking this year in your garden?

@redridgegardening

9 ай бұрын

@BryanInvest Things are going good thanks. Been a bit busy with other things in life. But the garden continues to do its thing 😁

Steak Sandwich! Oh man... my brain is boggled with all this great info, Bro! So much to think about haha! Thanks for sharing, Bryan

@BryanInvest

5 ай бұрын

Thank you! You're making me hungry bro. I hope this video awakens the hunger inside you to push on with your investing journey 👊💙

This is one of the best videos I have seen on debt recycling. You covered it so cleanly and comprehensively. kudos! Does the investment have to happen in a dividend generating stock? I do options trading to generate income. I assume this would also qualify as investment loan eligible for tax deductions right? I am planning to use my current money from my trading account to pay off the loan account and then redrawing to fund the trading account to continue my share and option trading!

@BryanInvest

5 ай бұрын

Great question. I’m not 100% sure. I think it depends if you qualify as a trader in the eyes of the ATO. Check out this article: www.insightaccounting.com.au/2015/09/are-you-a-share-investor-or-trader/ You might want to double check with a tax accountant about this while also structuring your loan accounts correctly with them.

You should also mention the benefits of fully franked dividends/imputation credits. Great video! :) on a side note ive always preferred the term "debt conversion" i think its far more intuitive.

@BryanInvest

7 ай бұрын

Absolutely mate. Thanks for pointing that out. Debt conversion sounds more modern 😎

@mattrt12

3 ай бұрын

whats the advantage of a fully frank credit other than the obvious it has no tax to pay. But would this not normally come from an stock purchase, rather than an ETF which makes it a little more risk?

This is fire 🔥

@BryanInvest

9 ай бұрын

Appreciate it mate 👊

Love your videos and love a good sandwich

@BryanInvest

7 ай бұрын

I appreciate you Mitchell! 👊

Thanks for the yummy sammich!

@BryanInvest

9 ай бұрын

You’re welcome. Glad you enjoyed 😄🥪

Hey Bryan Thanks a lot for sharing your knowledge. I have learned a lot from. Can you also share your views on how to buy property as a primary residence. I am new to Australia and confused where to buy. Should I use mortgage brokers, is the price right for this property. How will my investment perform. I am living in Melbourne. As my experience tell me that when too many people talk about some share don’t buy it until everything cools off does the same rule apply for property. Can you make detail video about your views on this topic please.

@BryanInvest

6 ай бұрын

Hello. Welcome to Australia. I will definitely make a future video on this topic. 😊

I didn't know about this 🤯 thanks bryan! sandwich 🥪

@BryanInvest

9 ай бұрын

Thanks for watching! 😄

Thanks for the sandwich

@BryanInvest

2 ай бұрын

No worries 🥪🥪🥪

I love your videos Bryan but I need advice on who to go to for more detailed advice on this strategy. Who do I go to for help? I would really like a company who manages all this for me, or even an advisor who can help. Our tax agent does not seem to help us with this. Please point me in the right direction if you can suggest something please?

Should the dividends go into line of credit account, or can it be part of reinvestment plan to maximise the tax benefit?

Good sanga banga this one.

@BryanInvest

2 ай бұрын

Appreciate it, mate! 🤝

Very useful content, thumbs up.... Just a quick suggestion, can you speak slower please, and also the way you deliver is like you are reading news for audience, hopefully you won't mind...

@BryanInvest

17 күн бұрын

Yes, I'm working on it! 😉

Few selective videos/channels I watch at 0.75X speed; otherwise, it's 1.25X or higher. Respect!😁

@BryanInvest

3 ай бұрын

Haha! I am honoured 😂

Great video. I have a question please: In example 2 where the home loan was split to 450K and 50K and directing dividends to pay the 450K bad debt. You said we can continue to grow the shares portfolie by redrawing the additional payments and buying more shares with it, how is that can be done step by step please? The dividends will go to the 450K loan, how can you then take them out and put them into the 50K loan to buy more shares?

Hi @bryaninvest, thanks for the helpful,video. I have a couple of questions for you. If you are choosing share investments (my preferences is ETFs), should you focus on high dividend paying shares for this strategy or high capital growth? Also, do the dividend paying shares need to be Aussie or will global work too?

@BryanInvest

2 ай бұрын

Hey Alexis, I have a long term outlook and plan to hold for ages so I prefer more capital growth. With dividends, you will have to pay tax everytime even if you set up DRP. As long as the stock is bought from the ASX, they should be paid in AUD. So there many global ETFs on the ASX that still pay AUD.

@AlexisGray-lv4fy

2 ай бұрын

@@BryanInvest thanks Bryan. So the true benefit derives from the total return growth (capital and dividends combined)… dividends are only necessary to ensure it is an ‘income generating asset’ and therefore the loan is tax deductible debt? In fact, a low dividend paying asset is better because it means a larger net income loss and improves the tax benefit if I am thinking correctly?

Any bank or financial institution you recommend for the line of credit? I am with NAB and their line of credit rate is: 9.28% while my home loan is at 6.34%?

hi, can i still do this with an investment property mortgage? or is it only for PPOR mortgage?

@mattrt12

3 ай бұрын

Yep 100% with an IP, am currently doing the same now. Although we plan to make it a PPOR in around 15yrs

Hi Bryan, you talk super fast for the information to sink in so it's information overload at high speed that I have to stop and start the video to write everything down. Thanks for all the info, we appreciate you 🙏🏾

@BryanInvest

3 ай бұрын

Haha, sorry about that. I'm naturally a fast talker. I've been trying to slow it down for the camera so hopefully future videos will be a bit slower. I appreciate your support! Wishing you all the best.

Considering if an individual already has a Share portfolio prior to debt recycling, is it recommended to have a separate HIN for debt recycled pool of shares?

984th...Thanks Bryan. Sandwich with cheese.. Any links of videos that talks about stocks paying dividends?

@BryanInvest

2 ай бұрын

Cheers mate. Here you go: kzread.info/dash/bejne/hJaXwahrgdvNg7g.htmlsi=tt7ntsDEYxwbPutC

Agree! The bigger share the bigger dividends. 😊 My question now is, is there a chance that your shares crash if managed by a wealth management?

@BryanInvest

2 ай бұрын

There is always risks when investing in shares. That’s why some investors go for ETFs/index funds since there is less ‘human management’ involved and you’re just automatically buying the entire market.

But what no one will tell you as there is no magic wand, is where to invest. I would assume as we are needing the income you would be looking for a greater dividend yield rather than growth. Also if they are better dividend yields would you not DRP or get the payout to bad debt, and then redraw same amount to buy the same etf again.

Option 2 - interest is deducted from income so net loss is actually $500. For that you get a 30% rebate of $150 so cost is $350. Therefore you need your shares to grow by that amount to make it worthwhile. Even then there is capital gains tax to pay.

@op2352

9 ай бұрын

Thanks for sharing, ppl often seem to skip explaining the part where the cost far exceeds the tax return. Still be great, if you could cover the cost (or should I say forced savings).

@vkturbo7676

2 ай бұрын

The capital gains tax will be a tax deduction because it's associated with mo ey made from debt.

@thealcobies

2 ай бұрын

I dont understand why with option 2 you have to pay 50k the second loan and redraw immediately?

@vkturbo7676

2 ай бұрын

@@thealcobies because if you have 5pk in cash rather than it being from a place of profit you get a loan put 5pk into it then take money out so then it becomes money from debt

@thealcobies

2 ай бұрын

@@vkturbo7676ohhh thank you. I watched the vid again and it was from offset.

Whilst it is a good concept on how to work around in getting more tax back through an investment property, there’s still an extremely high risk of a) not finding a tenant b) have a tenant who pays enough to cover your principle per month C) hoping to God that nothing in the house needs repair because you’ll be further out of pocket And probably most of all as you would find in majority of the paying off debt cases; D) the debt issue is 80% behaviour 20% financial situation. Majority (not all, but majority) of people who end up making more income don’t utilise it for what it was initially set up for in the first place.

@BryanInvest

Ай бұрын

The example in the video was for investing in shares, not an investment property. I get your point though. However, every investment carries risks. There will always be a ‘what if’. It’s just finding out how much risk you’re willing to take that will still let you sleep at night.

Thank you Bryan. Sandwich

@BryanInvest

6 ай бұрын

Thanks mate 🥪

When you compared option 1 vs Option 2 (6:30). There should have been an Option 3 with not touching your Offset amount of 50K..considering you have a 100% Offset arrangement with that $50K, you save the entire interest payable on that 50K vs saving only the 35% tax on the interest paid on that $50K shown under option 2. So essentialy: Option 1: $1300 returns from share dividends Option 2: $ 2175 ($1300 from share dividends + $875 from tax savings on interests) Option 3 (Suggested in comments above) : $ 2500 savings by keeping money in Offset account I am happy to be proved wrong

@BryanInvest

8 ай бұрын

Hi Sawab, I understand what you're saying. However, I have mentioned in the video that debt recycling makes sense IF you were planning to invest into shares anyway (so investing without receiving tax benefit). We can debate about investing in shares vs keeping money in offset all day long. There's not really a correct answer. What you are not taking into account with Option 1 and 2 is the historical expected overall return of shares in the long term which is about 8-10% on average per year. Eg. Option 1 & 2 should be $1300 from dividends plus any share price appreciation. Of course this is not guaranteed which is where the risk lies. I understand that the offset interest is a guaranteed tax free return and is a good option for some who are more risk averse. However, people invest in shares hoping they can beat the offset interest rate which historically it has. Otherwise, no one would bother investing and just keep all money in offset. So the point of the video is not offset vs investing. It's the most tax efficient way to invest IF you have already decided to invest outside Super.

@SawabAhmed

8 ай бұрын

@@BryanInvest Sure thanks for the clarification , so taking out money from an offset account and investing in anything which provides a return rate higher than my ROI on my current Home loan would definitely makes sense.. By the way your video content and presentation are excellent and provides massive value

@BryanInvest

8 ай бұрын

@@SawabAhmed Thank you, Sawab. I appreciate that! 👍

Sandwich. You'd give Busta Rhymes a run for his money you speak so fast! Great vid and share. Thanks

@BryanInvest

3 ай бұрын

Thanks Stuart. Can you believe that’s me already slowed down? 😅

Hi Bryan, Thanks for the video. What are your thoughts on Gold? For gold, do you suggest physical gold or gold stocks? For gold stocks which are the better ones in Australia with higher liquidity? Would really appreciate your response on this one.

@BryanInvest

9 ай бұрын

Hey mate, I don't really invest in gold so don't really know too much. I did some research a few months ago and you can invest into gold ETFs like QAU or GOLD which tracks the price of gold. In terms of physical gold, I would have no idea. You should probably read some reviews online to make sure it's safe. There has been some controversy in news about the quality of some of the gold bars.

@mattrt12

3 ай бұрын

As Bryan said you can invest in GOLD.ASX as an EFT and also PMGOLD which both give you a physical gold allocation, rather than just a paper based trade some offer.

I asked for a equity to my current home loan bank and they have given me this $$ by adding into my current home loan, will this be a problem?! thanks!

Could you recommend any tax specialists? The accountant I see (franchise) are useless

Bryan I keep thinking something is missing in your example: the interest on the new loan 2! In the chart at 5:34 the new loan 2 will have an interest cost that needs to be paid. Without digging into your own savings, this interest cost is funded by the dividend income. So if Interest cost is say 5% and Dividend Income is also 5%, there is no net cash leftover to pay down the bigger housing loan 1. In order for this to work, the dividend % earned has to be greater than interest %, and only that small differential would be what can be paid off Loan 1

@BryanInvest

9 ай бұрын

Hi Lakun, I understand what you are saying. The interest on loan 2 would have to be paid regardless. In fact, it’s the main reason we can claim a tax deduction. Without a debt recycling strategy, you would be paying the same amount of interest on 500k vs 450k + 50k. So yes, you would have to dig into your own savings to pay the interest (which you would be paying anyway). The main idea of debt recycling is to get that tax deduction on the interest (loan 2) you were going to pay anyway.

@darshirathod1213

6 ай бұрын

Kindly request you to reduce your speed of speaking plz

@ishqmaniac

5 ай бұрын

@@darshirathod1213 you can use the youtube speed setting and play the vidoe at slower speed (a .75x should be good enough)

@Migster1965

3 ай бұрын

Sandwich

Would be interesting to see how debt recycling is done with real estate.

@BryanInvest

9 ай бұрын

I think it's a bit more complicated with real estate but would be a great topic for sure!

sandwich!!!

Best strategy is property vs to your low capital growth in shares. Property $40k deposit Bank will loan 90% Capital Growth $400k @ 9.8% Return : $39,200 It's no surprise that property is the winner And repeat the process with more properties

@BryanInvest

9 ай бұрын

I love property but you're not including hidden costs/issues like stamp duty, interest rate increases, bad tenants, repairs & maintenance, psychological stress, lack of liquidity. You will need more cash in your pocket to cover all these things. Of course the upside is huge if the property market continues to go up and the tax benefits is unmatched.

But aren’t you also paying more for the original loan now that it’s gone from $300k to $400k? How does that cost factor in to your total made for the year?

@BryanInvest

Ай бұрын

Yes of course, but you’re using that $100k to buy hopefully appreciating assets that will grow well beyond $100k in the future. Plus the interest is tax deductible. This strategy is for people who were already going to invest in shares.

Can you simply redraw any extra payment in the home loan, transfer it to a new account and name that account "line of credit" and use it the same way or does it have to be a second loan - Line of credit?

@samarora8199

6 ай бұрын

never mind, answered it myself as it won't work unless the account is split into two as it would make it impossible to calculate the interest charged on the 2 x accounts and that's the reason, the second account is recommended.

It’d be good if you included an example of interest costs in your calculations. Especially in the first part of the video, it gives the impression that if you borrowed $100k of equity for 4% dividend yield, you’d be able to put all of that $4k back into Loan 1. But that’s will never be the case if there’s interest payable.

@BryanInvest

Ай бұрын

I did mention in the example it works best is an interest only loan. The idea is the shares provide a 4% dividend plus approximately 4% share price growth (the historical average return of the stock market). The interest payable would be tax deductible which would not be the case if you don’t debt recycle. This strategy is for someone who is looking to invest in shares anyway. I’m not encouraging you to get a loan to buy shares if that was never your intention in the first place.

Say you have that 500K (200K fixed, 300K variable) mortgage with 100K in offset If we want to use 100k to invest in ETFs, I understand we split the mortgage to include a 100k interest only loan (so now 200K fixed, 200 variable and 100K)- when paying down the 100k from offset, 1. does it matter which loan we pay down and is there a preference? 2. Once we have paid down the loan by 100k, do we have to use the total 100k split loan to buy shares or can it be done in parcels? Thank you

@themanhood2766

Ай бұрын

pay the non-tax deductible debt first, redraw on this portion and create a split loan. Use the funds from this split loan to invested in share (can be done as lump sum or parcel)

Other vid talks about redraws being a negative vs offset accounts, but here loan 2 redraws are encouraged. Which is the best for someone considering on purchasing a PPOR?

@BryanInvest

9 ай бұрын

Redraw only becomes an inefficient tax problem if the purpose of the 'loan' is for personal expenses. In this case, we are using it for investment purposes so the tax is treated differently. I prefer offset accounts because they are more flexible.

If I already have a $50k share portfolio, any way I can transition that to be tax deductible?

So let's say i have a rental property with 300k left to pay, I should split the loan and instead of just investing the 100k from the offset account (which i was planning in the first place) i should pay the account down to 200k and redraw the amount? How does paying off the loan and redraw affect the equity i can use for a future ppor? We're rentvesting at the moment ..

@BryanInvest

6 ай бұрын

Yes that's correct. I don't think impact future equity. You still end up in the same place. I would recommend speaking to a tax accountant to set up your accounts properly.

Line of credit interest rate is like 10%. Is that tax deductible against your home loan? I don't think so?

Hi Bryan, just stumbled onto your account and loving it! Question, let's say I split the loan and take out 200k of equity to invest. with the 200k, can I combine that with my existing shares in the same stake account? or does it need to sit in its own account and be separated from my current existing shares? Hopefully that makes sense. thanks Bryan (:

@BryanInvest

9 ай бұрын

Hi Jiimmy, thanks for the support! Yes, I believe that shouldn’t be a problem as long as you keep the buy confirmations and keep a record if you ever sell any of the ‘older shares. Just make sure you speak with a tax accountant to properly structure the loan in the first place. Good luck 😉

What I see in Option 2 (6:31) is that you made $1300 from dividends and you made $875 by savings on tax but you paid out $2500 as interest so you made a total loss of [$2500 - ($1300+$875)] = $ 325.. so essentially its not making for you but taking away an extra $325 .. without this strategy, you wouldn't have paid that $2500 on interest anyways as you have offset it using your $50K savings ....Am I missing anything ?

@BryanInvest

8 ай бұрын

Yes, I see your point but you're not taking into account the share price appreciation. Historically, the stock market returns 8-10% on average per year. This is not guaranteed of course but that's the risk you take as an investor. Anyway, the point of the video is the best tax efficient strategy for people who have ALREADY decided to invest outside of super. Not people who are deciding whether to invest or keep money in offset.

Just finished my sandwich. Can you do a video about offset vs savings accounts vs investing in shares?

@BryanInvest

9 ай бұрын

Great video idea! Thanks

These videos are so helpful, if you dont mind receiving feedback, i would just slow down in your diaolgue

@BryanInvest

8 ай бұрын

Thank you! And I absolutely welcome feedback to give my audience a more enjoyable experience. A few people have mentioned this so I’ll do my best to speak slower 😊

Basically good old risk and return. You are simply risking capital in the expectation of making more income and capital growth than the cost of money after tax benefits. Risk is quite high now I would guess.

@nickpower-fj9bu

9 ай бұрын

I will be implementing this if there is a significant market correction.

@BryanInvest

9 ай бұрын

Nicely put. You nailed it. If you're a long term investor and were planning to invest in Index ETFs anyway then this is way more tax efficient.

sandwich!

Hi Bryan, say if I had $100K sitting in a redraw account of my investment property saving myself 6.5% interest - would it be more beneficial if I redraw it to invest in shares instead so I can maximise my tax benefits or leave it as is to pay off the mortgage faster? Thanks in advance

@BryanInvest

6 ай бұрын

Theoretically, it could work out better if you did. However, 6.5% is quite high. I would just keep it in the redraw/offset. That 6.5.% is a guaranteed return and tax free. Whereas, nothing is guaranteed in the stock market. It would make more sense to debt recycle in a lower interest rate environment.

@porkbelly1144

6 ай бұрын

Cheers Bryan.. appreciate your input

I’m currently looking at debt recycling or just keeping my money in offset since I’m not too confident about the stock market presently. Do you think it’s a good time to invest? (Sandwich)

@BryanInvest

9 ай бұрын

If you're not ready to invest then keep your money in the offset account. Then continue to learn about the stock market and psychology behind it then you can revisit this strategy when you're feeling more confident.

SANDWITCH :D :D - can you slow down a bit for dummies like me :D

@BryanInvest

9 ай бұрын

Sorry mate! I actually speak much faster in real life but I’ll try to slow down a bit more 😂

Sandwich!

@BryanInvest

4 ай бұрын

👊👊

Sandwich. Could also suggest some tax accountant who will understand what you said. So we can use that tax agent. Majority of the tax agents don't care they just file what you give them so suggest a few or suggest who you use. Sandwich

@BryanInvest

9 ай бұрын

Hey mate, which state are you from? Well, they should care because they can get in trouble for giving their clients wrong advice. Debt recycling should be an easy concept to understand for a tax accountant.

@hybusinesssolutions9899

3 ай бұрын

Provide tax planning advice and lodge tax return are two different level of services😂

If it seems too good to be true, it isn't. This is doesn't work unless you can get a greater return than your home loan interest, and you have to keep your home loan on variable rates to keep 100% of any pay down or offset value (i.e. keeping it on the highest interest rates!!) Paying the money off your home loan directly is 100% RISK FREE and incurs NO TAX.

@BryanInvest

6 ай бұрын

Yes, I stated all this in the video. Also, you do not need to keep your home loan on a variable rate. It can certainly be done with a fixed rate. It's certainly not for everyone. It's for people who are going to use the money to invest anyway.

What if you buy the wrong shares?

@BryanInvest

2 ай бұрын

That’s always the risk. This strategy is not risk free. However, the strategy is for people are were going to invest in shares anyway.

What are the risks tho?

@BryanInvest

2 ай бұрын

I talk about this in the video: kzread.info/dash/bejne/nXiJrJRse6zIiqw.html

PPOR is dual ownership (husband & wife).. Using platform like Stake, it can only be single investor? Assume this would only be half the tax benefit ?

@BryanInvest

9 ай бұрын

That’s a really good point. I would think it’s fine since the tax is benefit the same household but not 100% sure. Best to check with a tax accountant or go with a joint account broker just in case.

You didn’t account for the repayments on the investment as you pushed the dividends to the home loan!

@BryanInvest

Ай бұрын

I did mention an interest only loan as the most optimal option.

@ianwooding3443

Ай бұрын

@@BryanInvest yes even interest only loans require payment of interest which you didn’t account for

Who could help someone set this up? A tax agent?

@BryanInvest

5 ай бұрын

Yes, any qualified tax accountant should be able to help you set on up properly.

Storm financial.....? Anyone?