Show Notes
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 $1 million 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 Listen on Spotify Money Website YouTube Podcast Playlist Email Us: [email protected] Get stories like this in our newsletter: bit.ly/3GDirbR
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