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The Secret Sauce To Paying Off Your Home Loan FASTER in Australia 2024 (Debt Recycling Guide)

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In this video, I’m going to show you how you can save thousands in tax and pay off your home loan faster by debt recycling.
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#Debtrecycling #homeloan #investingaustralia
⏰ TIMESTAMPS
0:00 - Intro
0:05 - What is debt recycling?
1:09 - First way to debt recycle
4:51 - Second way to debt recycle
6:56 - Advantages of debt recycling
7:33 - Risks of debt recycling
8:29 - Is debt recycling for you?l

Опубликовано:

13 авг 2024

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Комментарии : 352

@BryanInvest 10 месяцев назад

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@nobodyreally0162 7 месяцев назад

I was told my my tax man this won’t work if you live in the home? But I’m sure you said you can do this while living in the home..? Which it it please? I live in Adelaide..

@Venkata_kumar_us 7 месяцев назад

Hi Bryan, Think there is a flaw. If you look at your video at 06:32 You make $2000 in dividends at 4%. However you pay an extra $2500 (5% interest on 50K) You are losing $500. I’d rather leave that $500 in the offset and pay off the principal rather than losing. Your strategy will work if it’s earning more than 5%. But hey in todays market you have to atleast make 6.34% to beat your mortgage interest rate.

@user-bf4ce9in6r 4 месяца назад

can you do this with a investment property. What are the ways to reduce tax for an investment property?

@BryanInvest 3 месяца назад

@@Venkata_kumar_us Hey mate, the 4% is just from dividends. You need to take into account share price appreciation as well. The stock market usually averages 8-10% per year in the long term. It's not guaranteed to continue of course but we investing in the hope it does. Plus you will get a tax credit on the interest rate since you borrowed to invest.

@bronwynnagy3437 7 месяцев назад

so good the only utube vid that I don't have to speed up the talking!

@BryanInvest 7 месяцев назад

Haha thanks! I also speed up RU-vid videos when watching.

@Paradigm_shift916 2 месяца назад

Mate, you are a legend. Pure gold class information without the bs. Please don’t change.

@BryanInvest 2 месяца назад

I appreciate that mate! Don’t worry, I’m all for the Aussie people. More videos coming soon 🫡

@op2352 9 месяцев назад

Depending on your Debt-to-Income Ratio it's definitely worth it. However, with current interest rates and extra expenses, you'd better make sure your income can cover the cost of holding investment properties. Could you present a cost model with a timeframe for this exercise. A Gantt chart easily explains the step-by-step process.

@muhammadriyast3012 3 месяца назад

I have watched this video and could not stop myself watching it again and again until I got better understanding. Especially for the people having very little knowledge in this field. Subscribed the channel

@BryanInvest 3 месяца назад

That's great. Glad the video was helpful 👍

@jv-yw8xd 2 месяца назад

Same!

@jw6968 Месяц назад

Sandwich! Thanks for this awesome video. I definitely check all the boxes for someone who could debt recycle, and at first I was like 'jeez, why am I not doing this?' The 'not so fast' bit gave me some pause, definitely worth running the numbers first.

@BryanInvest Месяц назад

I'm glad you paid attention to the 'not so fast' bit. Like most things in life, you need to make calculated decisions and not just jump right in!

@TheMindReader69 4 месяца назад

1 Minute in and you've done an amazing job of giving a simple breakdown of the concept. Liked and subscribed for sure!

@BryanInvest 4 месяца назад

Thanks for the support!

@SawabAhmed 9 месяцев назад

When you compared option 1 vs Option 2 (6:30). There should have been an Option 3 with not touching your Offset amount of 50K..considering you have a 100% Offset arrangement with that $50K, you save the entire interest payable on that 50K vs saving only the 35% tax on the interest paid on that $50K shown under option 2. So essentialy: Option 1: $1300 returns from share dividends Option 2: $ 2175 ($1300 from share dividends + $875 from tax savings on interests) Option 3 (Suggested in comments above) : $ 2500 savings by keeping money in Offset account I am happy to be proved wrong

@BryanInvest 9 месяцев назад

Hi Sawab, I understand what you're saying. However, I have mentioned in the video that debt recycling makes sense IF you were planning to invest into shares anyway (so investing without receiving tax benefit). We can debate about investing in shares vs keeping money in offset all day long. There's not really a correct answer. What you are not taking into account with Option 1 and 2 is the historical expected overall return of shares in the long term which is about 8-10% on average per year. Eg. Option 1 & 2 should be $1300 from dividends plus any share price appreciation. Of course this is not guaranteed which is where the risk lies. I understand that the offset interest is a guaranteed tax free return and is a good option for some who are more risk averse. However, people invest in shares hoping they can beat the offset interest rate which historically it has. Otherwise, no one would bother investing and just keep all money in offset. So the point of the video is not offset vs investing. It's the most tax efficient way to invest IF you have already decided to invest outside Super.

@SawabAhmed 9 месяцев назад

@@BryanInvest Sure thanks for the clarification , so taking out money from an offset account and investing in anything which provides a return rate higher than my ROI on my current Home loan would definitely makes sense.. By the way your video content and presentation are excellent and provides massive value

@BryanInvest 9 месяцев назад

@@SawabAhmed Thank you, Sawab. I appreciate that! 👍

@james-jq8sk 22 дня назад

Sounds great, however trying me trying to explain this concept to my Bank would be impossible. I will watch a few more times to try to better understand, thank you. Great channel!

@BryanInvest 20 дней назад

Haha no problem mate. Speak to a loan manager at the bank, they should be aware of this.

@nickpower-fj9bu 10 месяцев назад

Option 2 - interest is deducted from income so net loss is actually $500. For that you get a 30% rebate of $150 so cost is $350. Therefore you need your shares to grow by that amount to make it worthwhile. Even then there is capital gains tax to pay.

@op2352 9 месяцев назад

Thanks for sharing, ppl often seem to skip explaining the part where the cost far exceeds the tax return. Still be great, if you could cover the cost (or should I say forced savings).

@vkturbo7676 3 месяца назад

The capital gains tax will be a tax deduction because it's associated with mo ey made from debt.

@thealcobies 2 месяца назад

I dont understand why with option 2 you have to pay 50k the second loan and redraw immediately?

@vkturbo7676 2 месяца назад

@@thealcobies because if you have 5pk in cash rather than it being from a place of profit you get a loan put 5pk into it then take money out so then it becomes money from debt

@thealcobies 2 месяца назад

@@vkturbo7676ohhh thank you. I watched the vid again and it was from offset.

@stevenizeti Месяц назад

Sandwich, Thank you for an informative vid.

@BryanInvest Месяц назад

🫡

@marinajzhang3683 2 месяца назад

Sandwich! Thank you for sharing your knowledge, Bryan.

@BryanInvest 2 месяца назад

Thank you! 💙

@lakunagr 10 месяцев назад

Bryan I keep thinking something is missing in your example: the interest on the new loan 2! In the chart at 5:34 the new loan 2 will have an interest cost that needs to be paid. Without digging into your own savings, this interest cost is funded by the dividend income. So if Interest cost is say 5% and Dividend Income is also 5%, there is no net cash leftover to pay down the bigger housing loan 1. In order for this to work, the dividend % earned has to be greater than interest %, and only that small differential would be what can be paid off Loan 1

@BryanInvest 10 месяцев назад

Hi Lakun, I understand what you are saying. The interest on loan 2 would have to be paid regardless. In fact, it’s the main reason we can claim a tax deduction. Without a debt recycling strategy, you would be paying the same amount of interest on 500k vs 450k + 50k. So yes, you would have to dig into your own savings to pay the interest (which you would be paying anyway). The main idea of debt recycling is to get that tax deduction on the interest (loan 2) you were going to pay anyway.

@darshirathod1213 6 месяцев назад

Kindly request you to reduce your speed of speaking plz

@ishqmaniac 6 месяцев назад

@@darshirathod1213 you can use the youtube speed setting and play the vidoe at slower speed (a .75x should be good enough)

@Migster1965 3 месяца назад

Sandwich

@badonkadonkskidz 2 месяца назад

But aren’t you also paying more for the original loan now that it’s gone from $300k to $400k? How does that cost factor in to your total made for the year?

@BryanInvest 2 месяца назад

Yes of course, but you’re using that $100k to buy hopefully appreciating assets that will grow well beyond $100k in the future. Plus the interest is tax deductible. This strategy is for people who were already going to invest in shares.

@deborasantos1819 2 месяца назад

Sandwich! It’s great you have emphasised all is involved. It is not about magic!

@BryanInvest 2 месяца назад

Thanks Debora. Yes, this is definitely not a magic pill.

@yenbanh8273 27 дней назад

Gold content! Thanks Bryan 💯🙏

@ab999852 Месяц назад

sandwich! never knew this kind of thing existed. Thanks!

@BryanInvest Месяц назад

No worries!

@SawabAhmed 9 месяцев назад

What I see in Option 2 (6:31) is that you made $1300 from dividends and you made $875 by savings on tax but you paid out $2500 as interest so you made a total loss of [$2500 - ($1300+$875)] = $ 325.. so essentially its not making for you but taking away an extra $325 .. without this strategy, you wouldn't have paid that $2500 on interest anyways as you have offset it using your $50K savings ....Am I missing anything ?

@BryanInvest 9 месяцев назад

Yes, I see your point but you're not taking into account the share price appreciation. Historically, the stock market returns 8-10% on average per year. This is not guaranteed of course but that's the risk you take as an investor. Anyway, the point of the video is the best tax efficient strategy for people who have ALREADY decided to invest outside of super. Not people who are deciding whether to invest or keep money in offset.

@torikatsudon018 Месяц назад

Have a thumbs up sandwich! Definitely given me food for thought! This is a much needed vid for Aussies!

@Under510 4 дня назад

Interesting tips and analysis! 👍

@JeffW-pt4lv 10 месяцев назад

Would be interesting to see how debt recycling is done with real estate.

@BryanInvest 10 месяцев назад

I think it's a bit more complicated with real estate but would be a great topic for sure!

@davdav8709 10 месяцев назад

This is a great video, real informative and tells you how to use the system, my problem is Im too risk avert to try it, sandwich.

@BryanInvest 10 месяцев назад

Cheers mate. That’s fair enough. It’s not for everyone. It’s just another tool in the arsenal at the end of the day!

@karinathomas881 3 месяца назад

Hi Bryan, you talk super fast for the information to sink in so it's information overload at high speed that I have to stop and start the video to write everything down. Thanks for all the info, we appreciate you 🙏🏾

@BryanInvest 3 месяца назад

Haha, sorry about that. I'm naturally a fast talker. I've been trying to slow it down for the camera so hopefully future videos will be a bit slower. I appreciate your support! Wishing you all the best.

@sheldonfaria 2 месяца назад

loan sandwich, great info as always. Im keen to give this a go. Thanks Bryan. Great video as always

@BryanInvest 2 месяца назад

Great to hear, Sheldon. Wish you all the best 😄

@SabahatHusain 4 месяца назад

Few selective videos/channels I watch at 0.75X speed; otherwise, it's 1.25X or higher. Respect!😁

@BryanInvest 4 месяца назад

Haha! I am honoured 😂

@RaulNigli Месяц назад

I didn't understand the Sandwich part until the end. 😂 Great video. Thanks

@taringaturi6950 6 месяцев назад

Steak Sandwich! Oh man... my brain is boggled with all this great info, Bro! So much to think about haha! Thanks for sharing, Bryan

@BryanInvest 6 месяцев назад

Thank you! You're making me hungry bro. I hope this video awakens the hunger inside you to push on with your investing journey 👊💙

@adamg6199 5 месяцев назад

sandwich time, thanks this explanation is simple and concise.

@BryanInvest 5 месяцев назад

Thanks Adam. That's what I like to hear 😄

@Batman-py2dy 11 дней назад

Great video. I have a question please: In example 2 where the home loan was split to 450K and 50K and directing dividends to pay the 450K bad debt. You said we can continue to grow the shares portfolie by redrawing the additional payments and buying more shares with it, how is that can be done step by step please? The dividends will go to the 450K loan, how can you then take them out and put them into the 50K loan to buy more shares?

@nickpower-fj9bu 10 месяцев назад

Basically good old risk and return. You are simply risking capital in the expectation of making more income and capital growth than the cost of money after tax benefits. Risk is quite high now I would guess.

@nickpower-fj9bu 10 месяцев назад

I will be implementing this if there is a significant market correction.

@BryanInvest 10 месяцев назад

Nicely put. You nailed it. If you're a long term investor and were planning to invest in Index ETFs anyway then this is way more tax efficient.

@adnanhashmi9833 29 дней назад

Very useful content, thumbs up.... Just a quick suggestion, can you speak slower please, and also the way you deliver is like you are reading news for audience, hopefully you won't mind...

@BryanInvest 28 дней назад

Yes, I'm working on it! 😉

@crowe286 10 месяцев назад

Thank god you did reality check on options towards the end of your video. In theory yes, but with many changes post covid many people have had totally change money management. strategies.

@BryanInvest 10 месяцев назад

Absolutely. Debt recycling is great if you mean all the prerequisites but its definitely not for everyone.

@mattrt12 3 месяца назад

But what no one will tell you as there is no magic wand, is where to invest. I would assume as we are needing the income you would be looking for a greater dividend yield rather than growth. Also if they are better dividend yields would you not DRP or get the payout to bad debt, and then redraw same amount to buy the same etf again.

@VincentTurner 2 месяца назад

Great video! (sandwich) .. thanks for laying this all out

@BryanInvest 2 месяца назад

Cheers Vincent 🤝

@bman8363 3 месяца назад

Subscribed to that sandwich. Cheers mate

@BryanInvest 3 месяца назад

Welcome to the family! 💙

@thealcobies 2 месяца назад

Agree! The bigger share the bigger dividends. 😊 My question now is, is there a chance that your shares crash if managed by a wealth management?

@BryanInvest 2 месяца назад

There is always risks when investing in shares. That’s why some investors go for ETFs/index funds since there is less ‘human management’ involved and you’re just automatically buying the entire market.

@ChangingLives-Yes 10 месяцев назад

Best strategy is property vs to your low capital growth in shares. Property $40k deposit Bank will loan 90% Capital Growth $400k @ 9.8% Return : $39,200 It's no surprise that property is the winner And repeat the process with more properties

@BryanInvest 10 месяцев назад

I love property but you're not including hidden costs/issues like stamp duty, interest rate increases, bad tenants, repairs & maintenance, psychological stress, lack of liquidity. You will need more cash in your pocket to cover all these things. Of course the upside is huge if the property market continues to go up and the tax benefits is unmatched.

@mandy1960 2 месяца назад

It’d be good if you included an example of interest costs in your calculations. Especially in the first part of the video, it gives the impression that if you borrowed $100k of equity for 4% dividend yield, you’d be able to put all of that $4k back into Loan 1. But that’s will never be the case if there’s interest payable.

@BryanInvest 2 месяца назад

I did mention in the example it works best is an interest only loan. The idea is the shares provide a 4% dividend plus approximately 4% share price growth (the historical average return of the stock market). The interest payable would be tax deductible which would not be the case if you don’t debt recycle. This strategy is for someone who is looking to invest in shares anyway. I’m not encouraging you to get a loan to buy shares if that was never your intention in the first place.

@indigofox7291 Месяц назад

Sandwich 🥪 Subscribed great video ❤

@BryanInvest Месяц назад

Cheers! Welcome to the family 😎

@bobbyb9907 4 месяца назад

Great video, well done man.

@BryanInvest 4 месяца назад

Thanks mate 👊

@shallanbiddle9052 2 месяца назад

Sandwich! Thanks for this, found it very helpful

@BryanInvest 2 месяца назад

Glad to hear! 🤝

@albysschoolofmusic2885 2 месяца назад

Whilst it is a good concept on how to work around in getting more tax back through an investment property, there’s still an extremely high risk of a) not finding a tenant b) have a tenant who pays enough to cover your principle per month C) hoping to God that nothing in the house needs repair because you’ll be further out of pocket And probably most of all as you would find in majority of the paying off debt cases; D) the debt issue is 80% behaviour 20% financial situation. Majority (not all, but majority) of people who end up making more income don’t utilise it for what it was initially set up for in the first place.

@BryanInvest 2 месяца назад

The example in the video was for investing in shares, not an investment property. I get your point though. However, every investment carries risks. There will always be a ‘what if’. It’s just finding out how much risk you’re willing to take that will still let you sleep at night.

@khoanguyen-vz4mj 18 дней назад

Great content and super helpful. Thank you Bryan!

@BryanInvest 16 дней назад

Awesome! Thank you ☺

@redridgegardening 10 месяцев назад

You always give me new ideas , thanks mate . Sandwich 🥪 😅

@BryanInvest 10 месяцев назад

That's what I'm here for mate! 😎 how's the crop looking this year in your garden?

@redridgegardening 10 месяцев назад

@BryanInvest Things are going good thanks. Been a bit busy with other things in life. But the garden continues to do its thing 😁

@Whatever-ib6ve 2 месяца назад

I love your videos Bryan but I need advice on who to go to for more detailed advice on this strategy. Who do I go to for help? I would really like a company who manages all this for me, or even an advisor who can help. Our tax agent does not seem to help us with this. Please point me in the right direction if you can suggest something please?

@PaulPenumala 5 месяцев назад

Well sandwich it is 😊. Thanks for the genuine and useful tips.

@BryanInvest 5 месяцев назад

Thanks mate! Glad it helped you 😄

@naomimc7726 5 месяцев назад

Sandwich. Great video ❤

@BryanInvest 5 месяцев назад

Thank you! ☺️

@jeremydouglas9633 7 месяцев назад

You should also mention the benefits of fully franked dividends/imputation credits. Great video! :) on a side note ive always preferred the term "debt conversion" i think its far more intuitive.

@BryanInvest 7 месяцев назад

Absolutely mate. Thanks for pointing that out. Debt conversion sounds more modern 😎

@mattrt12 3 месяца назад

whats the advantage of a fully frank credit other than the obvious it has no tax to pay. But would this not normally come from an stock purchase, rather than an ETF which makes it a little more risk?

@santoshkumar-ic3uy 2 месяца назад

Easy said than done ✅

@ozblokzedval7252 6 месяцев назад

Hi Bryan, thanks for the video which is better than a stake sandwhich. Do you think it is a good time to do a ''debt conversion'' this time of high interest rate for those in mortgage?

@AlexisGray-lv4fy 2 месяца назад

Hi @bryaninvest, thanks for the helpful,video. I have a couple of questions for you. If you are choosing share investments (my preferences is ETFs), should you focus on high dividend paying shares for this strategy or high capital growth? Also, do the dividend paying shares need to be Aussie or will global work too?

@BryanInvest 2 месяца назад

Hey Alexis, I have a long term outlook and plan to hold for ages so I prefer more capital growth. With dividends, you will have to pay tax everytime even if you set up DRP. As long as the stock is bought from the ASX, they should be paid in AUD. So there many global ETFs on the ASX that still pay AUD.

@AlexisGray-lv4fy 2 месяца назад

@@BryanInvest thanks Bryan. So the true benefit derives from the total return growth (capital and dividends combined)… dividends are only necessary to ensure it is an ‘income generating asset’ and therefore the loan is tax deductible debt? In fact, a low dividend paying asset is better because it means a larger net income loss and improves the tax benefit if I am thinking correctly?

@stuartmurray36 3 месяца назад

Sandwich. You'd give Busta Rhymes a run for his money you speak so fast! Great vid and share. Thanks

@BryanInvest 3 месяца назад

Thanks Stuart. Can you believe that’s me already slowed down? 😅

@trnjyq 9 месяцев назад

Hi Bryan, just stumbled onto your account and loving it! Question, let's say I split the loan and take out 200k of equity to invest. with the 200k, can I combine that with my existing shares in the same stake account? or does it need to sit in its own account and be separated from my current existing shares? Hopefully that makes sense. thanks Bryan (:

@BryanInvest 9 месяцев назад

Hi Jiimmy, thanks for the support! Yes, I believe that shouldn’t be a problem as long as you keep the buy confirmations and keep a record if you ever sell any of the ‘older shares. Just make sure you speak with a tax accountant to properly structure the loan in the first place. Good luck 😉

@endoplasma 2 месяца назад

What a good sandwich today. Thanks.

@ishqmaniac 6 месяцев назад

This is one of the best videos I have seen on debt recycling. You covered it so cleanly and comprehensively. kudos! Does the investment have to happen in a dividend generating stock? I do options trading to generate income. I assume this would also qualify as investment loan eligible for tax deductions right? I am planning to use my current money from my trading account to pay off the loan account and then redrawing to fund the trading account to continue my share and option trading!

@BryanInvest 6 месяцев назад

Great question. I’m not 100% sure. I think it depends if you qualify as a trader in the eyes of the ATO. Check out this article: www.insightaccounting.com.au/2015/09/are-you-a-share-investor-or-trader/ You might want to double check with a tax accountant about this while also structuring your loan accounts correctly with them.

@adamrichards5957 6 месяцев назад

Awesome...thank you Bryan... SANDWICH :)

@BryanInvest 6 месяцев назад

Cheers Adam 🥪

@nileshgore7925 7 месяцев назад

Hey Bryan Thanks a lot for sharing your knowledge. I have learned a lot from. Can you also share your views on how to buy property as a primary residence. I am new to Australia and confused where to buy. Should I use mortgage brokers, is the price right for this property. How will my investment perform. I am living in Melbourne. As my experience tell me that when too many people talk about some share don’t buy it until everything cools off does the same rule apply for property. Can you make detail video about your views on this topic please.

@BryanInvest 7 месяцев назад

Hello. Welcome to Australia. I will definitely make a future video on this topic. 😊

@rohitkoul2736 Месяц назад

Considering if an individual already has a Share portfolio prior to debt recycling, is it recommended to have a separate HIN for debt recycled pool of shares?

@jasonhart8580 Месяц назад

can you talk a bit slower please

@reefprayerresin 29 дней назад

Did you know you can change the video speed in Settings? You can speed it up or slow it down. Maybe .75 would be preferable. I often do this at night so I don't get too stimulated by fast talkers, and not be able to sleep.

@nigelfoxwell9423 6 месяцев назад

If it seems too good to be true, it isn't. This is doesn't work unless you can get a greater return than your home loan interest, and you have to keep your home loan on variable rates to keep 100% of any pay down or offset value (i.e. keeping it on the highest interest rates!!) Paying the money off your home loan directly is 100% RISK FREE and incurs NO TAX.

@BryanInvest 6 месяцев назад

Yes, I stated all this in the video. Also, you do not need to keep your home loan on a variable rate. It can certainly be done with a fixed rate. It's certainly not for everyone. It's for people who are going to use the money to invest anyway.

@method341 Месяц назад

Line of credit interest rate is like 10%. Is that tax deductible against your home loan? I don't think so?

@shannonthemason 10 месяцев назад

great Video, thanks

@BryanInvest 10 месяцев назад

Cheers Shannon 👍

@atepatty6216 9 месяцев назад

Thanks Mate! :-) This is very helpful!

@BryanInvest 9 месяцев назад

Cheers!

@n1cky23 6 месяцев назад

So let's say i have a rental property with 300k left to pay, I should split the loan and instead of just investing the 100k from the offset account (which i was planning in the first place) i should pay the account down to 200k and redraw the amount? How does paying off the loan and redraw affect the equity i can use for a future ppor? We're rentvesting at the moment ..

@BryanInvest 6 месяцев назад

Yes that's correct. I don't think impact future equity. You still end up in the same place. I would recommend speaking to a tax accountant to set up your accounts properly.

@aarontong7948 10 месяцев назад

I’m currently looking at debt recycling or just keeping my money in offset since I’m not too confident about the stock market presently. Do you think it’s a good time to invest? (Sandwich)

@BryanInvest 10 месяцев назад

If you're not ready to invest then keep your money in the offset account. Then continue to learn about the stock market and psychology behind it then you can revisit this strategy when you're feeling more confident.

@willmander 10 месяцев назад

Other vid talks about redraws being a negative vs offset accounts, but here loan 2 redraws are encouraged. Which is the best for someone considering on purchasing a PPOR?

@BryanInvest 10 месяцев назад

Redraw only becomes an inefficient tax problem if the purpose of the 'loan' is for personal expenses. In this case, we are using it for investment purposes so the tax is treated differently. I prefer offset accounts because they are more flexible.

@tomasvenclicek2847 2 месяца назад

Hi, thank you for your video. Is there a way fo debt recycling for investment property with equity? Thanks!

@ElusiveAlloy 10 месяцев назад

Sanga! Great video ✌️

@BryanInvest 10 месяцев назад

Thanks mate 🥪

@etrtomryan 10 месяцев назад

PPOR is dual ownership (husband & wife).. Using platform like Stake, it can only be single investor? Assume this would only be half the tax benefit ?

@BryanInvest 10 месяцев назад

That’s a really good point. I would think it’s fine since the tax is benefit the same household but not 100% sure. Best to check with a tax accountant or go with a joint account broker just in case.

@Sammyinfotech 2 месяца назад

Any bank or financial institution you recommend for the line of credit? I am with NAB and their line of credit rate is: 9.28% while my home loan is at 6.34%?

@ashleyashley555 9 месяцев назад

🥪 very informative 👍🏻

@BryanInvest 9 месяцев назад

Thanks! You're making me hungry 🥪

@dz6593 5 месяцев назад

Thanks for the vid. For your second way of debt recycle, this means you pay less repayment compared to the first way (coz interest only loan is always higher than home loan rate) and it is not technically borrowing equity from the bank anymore but using your own cash. Is that right? Does this increate the home loan you paying for the original home loan given you are using the extra cash for investment instead of offsetting the home loan? Thanks

@Sammyinfotech 2 месяца назад

Should the dividends go into line of credit account, or can it be part of reinvestment plan to maximise the tax benefit?

@morgangriffen6331 10 месяцев назад

Just finished my sandwich. Can you do a video about offset vs savings accounts vs investing in shares?

@BryanInvest 10 месяцев назад

Great video idea! Thanks

@asifinreallife 10 месяцев назад

Hi Bryan, Thanks for the video. What are your thoughts on Gold? For gold, do you suggest physical gold or gold stocks? For gold stocks which are the better ones in Australia with higher liquidity? Would really appreciate your response on this one.

@BryanInvest 10 месяцев назад

Hey mate, I don't really invest in gold so don't really know too much. I did some research a few months ago and you can invest into gold ETFs like QAU or GOLD which tracks the price of gold. In terms of physical gold, I would have no idea. You should probably read some reviews online to make sure it's safe. There has been some controversy in news about the quality of some of the gold bars.

@mattrt12 3 месяца назад

As Bryan said you can invest in GOLD.ASX as an EFT and also PMGOLD which both give you a physical gold allocation, rather than just a paper based trade some offer.

@AVDEEVEE 3 месяца назад

Say you have that 500K (200K fixed, 300K variable) mortgage with 100K in offset If we want to use 100k to invest in ETFs, I understand we split the mortgage to include a 100k interest only loan (so now 200K fixed, 200 variable and 100K)- when paying down the 100k from offset, 1. does it matter which loan we pay down and is there a preference? 2. Once we have paid down the loan by 100k, do we have to use the total 100k split loan to buy shares or can it be done in parcels? Thank you

@themanhood2766 Месяц назад

pay the non-tax deductible debt first, redraw on this portion and create a split loan. Use the funds from this split loan to invested in share (can be done as lump sum or parcel)

@ianwooding3443 2 месяца назад

You didn’t account for the repayments on the investment as you pushed the dividends to the home loan!

@BryanInvest 2 месяца назад

I did mention an interest only loan as the most optimal option.

@ianwooding3443 2 месяца назад

@@BryanInvest yes even interest only loans require payment of interest which you didn’t account for

@investingwithapurpose 2 месяца назад

I am currently facing a dilemma : I am about to use the cash saving to buy a home for my daughter, it will be as an investment property & she will still be paying basic rent to serve the loan . With the current 5% interest rate, the cash in the bank has been giving me good interest income which I use some portion to invest in stocks. But now if the money move into the offset, not only I lost interest income, I need to top up or collect enough rent to pay the mortgage at 6.3%. I even wonder if I will have to sell shares (unwillingly) to offset mortgage liability … if anyone can advise if there is a better Win Win strategy ..

@BryanInvest 2 месяца назад

I think your question is more philosophical than a financial one. From a financial standpoint, if you have a home loan then parking your money in the offset is the superior choice versus leaving it in a HISA since the offset will give you a guaranteed tax free return which is even higher than a HISA. If you want to help out your daughter buy a home then there is no magic pill solution where you can keep your cash in a savings account AND help her with the deposit. It's one or the other. Wish you all the best.

@investingwithapurpose 2 месяца назад

@@BryanInvest Yes! you are right! Thank you 🙏 I know what to do now

@nomis879 2 месяца назад

Thanks for the sandwich

@BryanInvest 2 месяца назад

No worries 🥪🥪🥪

@jopadjr 2 месяца назад

984th...Thanks Bryan. Sandwich with cheese.. Any links of videos that talks about stocks paying dividends?

@BryanInvest 2 месяца назад

Cheers mate. Here you go: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Rbc_F2QxgSU.htmlsi=tt7ntsDEYxwbPutC

@eeiko321 2 месяца назад

What if you buy the wrong shares?

@BryanInvest 2 месяца назад

That’s always the risk. This strategy is not risk free. However, the strategy is for people are were going to invest in shares anyway.

@littleevilpro 10 месяцев назад

Sandwich. Could also suggest some tax accountant who will understand what you said. So we can use that tax agent. Majority of the tax agents don't care they just file what you give them so suggest a few or suggest who you use. Sandwich

@BryanInvest 10 месяцев назад

Hey mate, which state are you from? Well, they should care because they can get in trouble for giving their clients wrong advice. Debt recycling should be an easy concept to understand for a tax accountant.

@hybusinesssolutions9899 3 месяца назад

Provide tax planning advice and lodge tax return are two different level of services😂

@agnosticpatriot 3 месяца назад

Hi, For the first method, if we earn dividends which is a profit (capital tax deductions) and pay off the first loan. We still have to pay that tax on profit, rigjt, where is tax deduction on that?

@BryanInvest 3 месяца назад

Yes, you still have to pay tax. The tax deduction comes from the interest rate you're charged for borrowing money to use for investing. 'If you borrow money to buy shares or related investments from which you earn dividends or other assessable income, you can claim a deduction for the interest you pay'. www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/investments-insurance-and-super/interest-dividend-and-other-investment-income-deductions

@astral397 10 месяцев назад

I didn't know about this 🤯 thanks bryan! sandwich 🥪

@BryanInvest 10 месяцев назад

Thanks for watching! 😄

@davidziaja 7 месяцев назад

Hi @bryan, thanks for the video, very informative; how would this work if you are currently in a primary place of residence (for example 200k equity on 600k property and wanting to get a new loan to purchase a new primary place of residence (keeping the original property as the investment asset)

@janebaker4912 10 месяцев назад

Invest $100k and with 4k dividends pay offvthd loan... But im sure the debt payments would be more than that

@BryanInvest 10 месяцев назад

You have to weigh the risk vs reward. If you use equity then yes you are hoping to get a better return than the interest rate (with a tax deduction). If you want ‘less risk’ then you could consider using cash you already have like in the second example. That way, you were going to use money to invest anyway, so may as well get some free tax deductions from it.

@Sammyinfotech 2 месяца назад

If I already have a $50k share portfolio, any way I can transition that to be tax deductible?

@porkbelly1144 6 месяцев назад

Hi Bryan, say if I had $100K sitting in a redraw account of my investment property saving myself 6.5% interest - would it be more beneficial if I redraw it to invest in shares instead so I can maximise my tax benefits or leave it as is to pay off the mortgage faster? Thanks in advance

@BryanInvest 6 месяцев назад

Theoretically, it could work out better if you did. However, 6.5% is quite high. I would just keep it in the redraw/offset. That 6.5.% is a guaranteed return and tax free. Whereas, nothing is guaranteed in the stock market. It would make more sense to debt recycle in a lower interest rate environment.

@porkbelly1144 6 месяцев назад

Cheers Bryan.. appreciate your input

@chorcor888 24 дня назад

I asked for a equity to my current home loan bank and they have given me this $$ by adding into my current home loan, will this be a problem?! thanks!

@shaunminehan 7 месяцев назад

well yes but if everyone did this therer would be no taxes for schools, hospitals, health etc im happy to pay tax as should you be.

@BryanInvest 7 месяцев назад

I totally agree that paying tax is a duty by all citizens and residents. It is important to maintain a functioning society. However, everyone already pays a generous tax rate to the government in Australia. This video is not about avoiding all tax, but if there’s a legal tax deduction, then you can choose to take it.

@pabichpawel 10 месяцев назад

When you pull 50k from your home loan you will increase your home loan which means you will pay more interest there. That additional spend was not included in your calculation.

@BryanInvest 10 месяцев назад

Actually you are not increasing your home loan. The example I used is you have a 500k home loan + 50k in offset. Then you split the loan into 2. Loan 1 = 450k. Loan 2 = 50k. Then you use the 50k in your offset that you already have to pay off loan 2 then redraw (borrow).

@pabichpawel 10 месяцев назад

@@BryanInvest ok, it's crazy if that's legal :)

@BryanInvest 10 месяцев назад

@@pabichpawel it's absolutely legal. Just need to structure it correctly :)

@davidunwin7868 3 месяца назад

Sandwich. It's a silent "B" in "debt", so it's "det". Don't even try to slide it in softly. It's the same with knuckles. Silent K. Or write. Silent W. They're all leftovers from French, Latin, old English etc.

@BryanInvest 3 месяца назад

Wow, I thought you were pulling my leg but you’re right. I was never taught to pronounce it like that. Thank you for pointing it out. It’s a big load off for me going forward because I always struggle to pronounce the B in a sentence. Saying ‘det’ is so much easier! 😄

@davidunwin7868 3 месяца назад

@BryanInvest no worries. Another favourite of mine is when you go into 7/11 and at the end of the transaction, the cashier says "would you like a receipt" but they always pronounce the "P". It's a silent P. So the word should sound like ree-seet. But it comes out as ree-seep-t.

@BryanInvest 3 месяца назад

@@davidunwin7868 that one I knew! Haha. Cheers David.