“Someone who chooses interest-only on the investment split usually maximises the deductible interest and directs all surplus… towards a non-deductible home loan”
AG
Aidan Gullman
Financial Autonomy ·
“Take the guaranteed return on paying down non-deductible debt. rate rise before Christmas, home is between 6.25 and 6.5%, that's a guaranteed after-tax return. with 8% return you lose 30% CGT”
Riley Jan · Geared for Growth Property Investing Podcast · Ep. 352: What Comes Next If The Old Investing Playbook Is Dead, with Riley Jan
Play from 17:54
17:54
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What was described
recommend paying down non-deductible home loan when interest rates are 6.25-6.5% as a guaranteed after-tax return
6.25%-6.5% interest, 8% expected return, 30% CGT
Said nearby on the same subject
“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 ·
“Most developers, including myself, are getting capitalized interest, which means I don't have to pay it every month. I pay it when I finish the project, sell down, the bank gets the debt, then the interest rate repayment”
DH
David Hamilton
Inside Commercial Property ·
“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 ·
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