98: Debt Recycling: The Little Known Strategy for Turning Your Mortgage Into a Tax Deduction (…Kinda)

If you own a home, or have ever thought about it, you have undoubtedly thought about how much the repayments are going to cost…

It is natural then, to start thinking… “How can I reduce my debt!?”

But… what if there was a way that you could actually use the debt in your home to fuel a powerful portfolio…

And at the same time, reduce the cost of the repayments on your home?

You see…

Real estate is like a chess game with lots of pieces you need to move strategically to win, and if you enjoy pondering over these aspects of property, today’s conversation will be of real benefit to you.

We share actionable items for homeowners and talk about the idea of turning the debt on your home into tax deduction, using it to fund your investments, why this strategy works well in this asset class, how to approach debt recycling depending on where you are on your journey, and who it’s for. 

We also cover using your debt as leverage…
Who you should speak to about using debt recycling as a strategy…
Other ways to get equity out of your property for debt recycling…
And so much more.

See you on the inside!

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In this episode, we cover:

  1. Why talk about debt recycling (and who is it for)? [07:06]
    • The downside to owning a home [11:12]
    • Debt recycling is a challenging concept for some people [14:24]
  2. How to strategically approach debt recycling [16:03]
  3. Why does this strategy work well in real estate? [18:41]
  4. Factoring in tax deductibility [21:24]
  5. How debt recycling makes good use of leverage in this asset class [23:27]
  6. Debt recycling is a good strategy, but be aware of its downsides as well [26:21]
  7. Who should you speak to about using debt recycling as a strategy? [30:57]
  8. Debt recycling is not a ‘chips & dip’ strategy [34:29]
  9. A game of finance with high stakes [38:44]
  10. Other ways to get the equity out of your property for debt recycling [40:00]

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