How can I use the equity in my home to invest? | Debt recycling

What is debt recycling? How can Australians use the equity in their primary residence to invest more efficiently?
In its simplicity: debt recycling is a strategic approach to paying down your non-deductible home loan debt while simultaneously freeing up equity to invest in other income-producing assets. The principle behind this is to allow you to claim tax deductions on the new debt, thus accelerating your wealth creation.
In this video, I explore debt recycling and how you can use the equity in your home to invest in the share market.
The content of this video is not intended to represent or be a substitute for specific taxation or legal advice and should not be relied on as such. Any taxation, legal, and other matters referred to in this video are based on Stockspot’s interpretation of existing laws and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
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[@ilarums]

Effectively you are talking about margin loan. And I am reminded of the dangerous of this the story of Rick Guerin and how he had to sell BKK.A shared for just $40 during the 73 and 74 downturn. Though he did well after that the lesson is there is no guarantee of success and we never hear of hundreds that have had to shut down

[@uberboiz]

Nah, it's not the same as margin loan. Margin loan is secured against the borrower's share portfolio and would trigger a 'margin call' if the market value of the portfolio drops under a certain level - there's no such thing as 'margin call' if the borrowing is secured against the equity of the borrower's real estate instead. Having said that, I agree with your point that using debt to invest always carries a higher level of risk.