How does debt recycling work for property investors?
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Transcript of How does debt recycling work for property investors?
WHAT IS DEBT RECYCLING?
Debt Recycling is turning bad debt, intogood debt.
therentvestingpodcast.com.au
The worst! Well not quite,but it is non-tax deductibledebt. Generally this is theloan you might have usedto buy you home and has
no tax benefits
BAD DEBTIS...
therentvestingpodcast.com.au
therentvestingpodcast.com.au
Good debt is deductibledebt. E.g. Lending thatwas used for investmentpurposes that can
potentially lower yourtaxable income.
GOODDEBT IS..
01Most people’s wholestrategy is trying to payyour home off as soon aspossible but it doesforego future wealthbuilding.
therentvestingpodcast.com.au
03For example, in yourown property that youlive in, all that debt isconsidered bad debt =non-deductable debt.
therentvestingpodcast.com.au
04
So the whole process isturning bad debt intogood debt, over the longterm - allowing you toinvest now rather thanwait until later.
You can have your cakeand eat it!
therentvestingpodcast.com.au
WHAT IS DEBTRECYCLINGAND HOW IT
WORKS?
WHAT ISGOOD ANDBAD DEBT –
THEDIFFERENCE
BETWEENTHEM?
IN THIS EPISODE WE COVERTHIS IN MORE DETAIL:
RISKS ANDCOMMON
TRAPSPEOPLE GETTHEMSELVES
INTO
E M A I [email protected]
C O N T A C T N O .0421 874 357
W E B S I T Etherentvestingpodcast.com.au
THANKYOU/