Debt Recycling Strategy Explained | Home Mortgage Redraw To Invest In Stock Market

Debt recycling australia strategy explained using home loan mortgage redraw to invest in stocks and etfs in the stock market. What is debt recyling? Debt recycling is a strategy that aims to help you pay off your non-deductible debt such as a home loan as quickly as possible, while also building up your wealth in a tax-effective way over the longer term. It involves replacing or ‘recycling’ the debt in your family home with tax-deductible debt from investments.

How does debt recyling strategy work? This strategy involves using equity from your home to invest in income-producing assets with the possibility of growth. Over time, the earnings from these investments may be paid towards your home loan, helping to pay it off faster than if you were just making regular payments. Typically, the interest on investment loans is tax deductible. That means, this strategy has the potential to create a tax saving, which can also be put towards your home loan. In addition, if your new investments go up in value, you’ll be building your wealth at the same time. At the end of the first year, the goal is to increase your investment loan by the same amount that you have paid off your home loan and reinvest that increased amount. The idea is to repeat this process each year until your investment loan entirely replaces your home loan.

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*None of this material is meant to be construed as investment advice, it's for education purposes only. The video is accurate as of the posting date but may not be accurate in the future.*

Видео Debt Recycling Strategy Explained | Home Mortgage Redraw To Invest In Stock Market канала Sage Finance