“I wouldn't use the funds to buy investment properties. I'd be using the funds to reduce my owner-occupied debt and then leveraging to buy investment properties.”
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Said on this is property
Michael Yardney · Property Investment & Wealth Creation Australia | The Michael Yardney Podcast · Property Investors: Why Playing It Safe Could Cost You a Fortune
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advocate using productive leverage (investment debt) to acquire growth assets rather than avoiding all debt
“I wouldn't use the funds to buy investment properties. I'd be using the funds to reduce my owner-occupied debt and then leveraging to buy investment properties.”
“You need to earn over 13% on your investment to be better than paying down the debt… debt repayment is risk-free”
“Debt recycling… $500,000 non-deductible mortgage, got 50K in savings… split it… now $450,000 and $50,000 and then go invest the 50K into shares… now you have $450,000 non-deductible debt and 50,000 tax deductible debt”
“Buy investment grade assets... Use leverage wisely... Hold for the long-term... Invest in the right structures... Manage your cash flow.”
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