“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
Steve Johnson · Equity Mates Investing Podcast · Steve Johnson: What the market is missing about the AI boom
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Use a 30-year low-rate mortgage to fund a portfolio of shares, effectively leveraging cheap debt to buy equities
First mortgage 2.05% fixed for four years; current mortgage 5.8-5.9%; 30-year term
“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.”
“Our portfolio is 80 equities, 20 debt. ... we will be compensated more and make more money effectively off equities than we will bonds.”
“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”
“At 5.3% for a 30-year mortgage… $1 million mortgage is a $2 million repayment… if the bank of mom and dad gives you $100,000 you only need a $900,000 mortgage… you saved $200,000”
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