“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”

Pat Noll · Equity Mates Investing Podcast · Ask An Adviser: Where property is heading, debt recycling and the future of rentvesting with Pat Noll

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What was described

Debt recycling by first splitting a mortgage to create a tax-deductible portion, then investing the split amount in shares

$500,000 non-deductible mortgage, $50,000 savings → split to $450,000 non-deductible + $50,000 deductible, invest $50,000 in shares

Said nearby on the same subject

“Loan split… $500,000 non-deductible home loan… put $100,000 into the loan, split it into $400,000 or $100,000 and then go invest $100,000 in shares”
PN
Pat Noll
Equity Mates Investing Podcast ·
How they work $500,000 loan split into $400,000 non-deductible + $100,000 deductible Share this moment
“…you can get your CGT benefits, you can get your first home buyer benefits… then you can debt recycle and invest from there.”
PN
Pat Noll
Equity Mates Investing Podcast ·
Why it worked Share this moment
“I just got an unconditional approval for a loan and signed loan docs on Saturday. It's a $6.5 million loan and it was split into two portions, one at 6.14% interest only investment and one at 6.34%. So we guarantee our rates at 6.1%.”
JH
Jack Henderson
Asset Rich with Jack Henderson ·
Why it worked $6.5 million; 6.14%; 6.34% Share this moment
“I just got an unconditional approval for a loan… split into two portions, one at 6.14%… we guarantee our rates at 6.1.”
JH
Jack Henderson
Mo Money ·
Pricing $6.5 M loan; 6.14% and 6.34% interest portions; guaranteed rate 6.1% Share this moment

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