@financial.leigh: The Hokey Pokey Strategy, aka debt recycling. 🕺 In this example, the homeowner has: • A $4 million home loan • $4 million in available cash • A 6% interest rate That means $240,000 per year in interest. Instead of investing the cash directly, the homeowner uses it to pay down the non-deductible home loan, redraws the money through a properly structured investment loan, then uses those funds to purchase income-producing shares. The result? The debt is still $4 million, but the interest may now be tax deductible. 🧾 This strategy isn’t only for people casually finding $4 million behind the couch. Whether your home loan is $400,000 or $4 million, if you have a home loan, available cash and you’re already planning to invest, debt recycling may allow you to progressively convert non-deductible home debt into tax-deductible investment debt. You put the money in, you take the money out, you purchase the shares, and turn the tax treatment around. And that’s what it’s all about. 🪩 The loan structure, movement of funds and investment purpose all matter, so obtain appropriate tax and financial advice before implementing the strategy. #debtrecycling #mortgagestrategy #propertyfinance #financehumour #australianproperty

Financial Leigh®

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Thursday 30 July 2026 21:00:20 GMT