Hi all, I've read a bit about debt recycling, but I am still unsure about how I could use it in my situation. I am looking to use some of the equity I have built up to debt recycle and invest in ETFs. Currently, I put my money into my offset account, and whenever I want to buy shares (~25k per year), I use the funds from the offset account. Current situation: PPOR- Value= 540k, Loan= 250k. 75k in the offset linked to the PPOR loan. Using the information above, how could I continue to invest 25-50k a year in shares using debt recycling? To debt recycle, am I using the equity I have to invest in the shares, or do I use the existing 250k loan and split that and use that to invest? Also, who is the best person to speak to for advice on how to do/structure this? Lawyer? Tax advisor? Accountant? Mortgage specialist? Thank you in advance for all your responses, especially if I get some from @Terry_w
You are throwing money away! You need to speak to a lawyer or a tax agent as debt recycling is tax advice. as a guide you need to split your loan, pay it down, reborrow and buy income producing assets without the borrowed money taking any detours.
Thanks for your reply, Terry. When you say i am 'throwing money away', i assume you are implying that putting money into my offset and then taking it out of there when i buy shares is NOT the best way to go about it? Better off continuing to pile up the offset and use debt recycling or my equity to purchase the shares? Thanks again.
Thanks, I thought that's what you meant. I will speak to my lawyer and tax advisor but appreciate any other responses from you or others on here until then.
