How debt recycling can make you money [#247]
Debt recycling explained: how Australians turn home equity into investments
In this Friends With Money episode from Money Magazine, host Ryan Johnson chats with mortgage broker Joseph Daoud (It’s Simple Finance) to unpack debt recycling in plain English. They explain how splitting your home loan or using a line of credit lets you access equity to invest in property, shares or a business, with potential tax benefits from deductible interest and investment expenses. They work through a $1m home example, outline who this suits (often higher-income earners and many self-employed borrowers), and step through setup essentials: pick the right lender and structure (often interest-only), team up with a good broker and accountant, and keep the investment purpose clear. They also flag the big risks—bad advice, risky assets, rising rates, thin buffers—and why retirees or lower-income earners can be overexposed without a solid exit plan.
Timestamps
00:00 What debt recycling is
01:09 How the structure works
02:38 Who it suits
04:33 Goals and tax benefits
05:35 A real case study
08:02 Setting up the loan split
11:23 Choosing investments
12:13 Risks and rate rises
16:38 Which pros to call
17:34 Who should avoid it
20:43 Three rules and wrap
Podcast Links:
Listen on Apple Podcasts: https://apple.co/3mV0Cbr
Listen on Spotify: <a href="https://spoti.fi/3fSPI2h" target=”_blank” rel=”nofollow”>https://spoti.fi/3fSPI2h
Website: https://moneymag.com.au
Email: podcast@moneymag.com.au
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