Investing vs extra mortgage repayments

Discussion in 'Share Investing Strategies, Theories & Education' started by Phil82, 27th Apr, 2016.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Good work and yes, you are borrowing to purchase an income producing asset so the interest should be deductible, as long as there are no detours.
     
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  2. Phil82

    Phil82 Well-Known Member

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    If the debt recylcling stratergy is used does it mean that when I eventually sellmy house will it mean I have to pay capital gains tax on my house?
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No connection between the 2
     
  4. Phil82

    Phil82 Well-Known Member

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    Thanks @Terry_w I didn't think there was. I just mentioned debt recycling to my father in law and he seemed to think there would be. Thanks for the reply.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Debt recylcing just involves paying down non deductible debt and borrowing to invest. The asset securing the loan doesn't change and no CGT consequences to the security because of this.
     
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