Debt Recycling In Australia | Pay Off Your Debt Faster

Рет қаралды 21,819

Күн бұрын

Пікірлер: 61

@DavidNolen-k2w Ай бұрын

Can you do a video focused on if you have paid off your property and trying to decide whether to use the equity or your cash, provided you've got enough, to invest?

@display3652 Ай бұрын

Always equity first. Cash on hand is for an emergency...id say

@kripart2881 Ай бұрын

Pay off debt faster, Thanks Ravi. Your videos are wonderdul mate.. Keep up your good work! Please provide some free information for people like us.

@chrisspencer1879 Ай бұрын

Hi Ravi, that is not debt recycling, you've only gone into the basics of releasing equity to buy an investment property. That is nothing new, you've missed a number of important steps to make this work and that is on top of purchasing cashflow positive assets to actually pay down your PPOR. The negative gearing can work to pay down PPOR if you can sustain the negative cashflow and pay down with each tax refund. You'll need a much longer video on how and why debt recycling works, it does work and takes a lot of time and effort including a number of refinances

@MsChampagneSanity Ай бұрын

Probably why he said to go watch his video on negative gearing which he alludes to as being more in depth?

@renaekiely Ай бұрын

Thank you! Your content is clear and concise.

@Adamoo8 17 сағат бұрын

Nice video, only thing I would argue is that good debt is debt on an appreciating asset and bad debt is against a depreciating asset (car, holiday etc). Being able to deduct against tax doesn't make the debt good, spending a dollar to get back 50 cents back isn't good by itself.

@stevenizeti Ай бұрын

Pay of debt faster, Thanks Ravi.

@shyamgomatam6017 Ай бұрын

Fantastic video. My question is if you only kept paying interest only, how will you pay your principal on the investment property? I am keen because I like paying my principal and interest off quickly and then turn my investment property into income generating properties. Hopefully by the time I retire I can have 4 houses where I have completely paid off the principal and interest and then live in a house which is mortgage free. Thoughts?

@joshuaowen10 Ай бұрын

Once you have paid off your non-deductible debt (PPOR) you could build up offset accounts against your IPs. Later you can decide if you want to pay off in full.

@tenchii270511 Ай бұрын

Pay off debt faster. Thanks heaps for all the insights and well thought out and presented info.

@Jacowduplessis Ай бұрын

Hi Ravi, Good content, but I think it would have been responsible to mention the pitfalls of this strategy as well. This only works if you do it responsibly. Unfortunately the banks, buyers agencies etc incentives aren't aligned to the person who takes on all the debt.

@PersonalFinancewithRaviSharma Ай бұрын

100% correct. That’s why having a strategy before diving into any of this is the key.

@RosyJaye Ай бұрын

As a mortgage broker, this is also what I teach my clients and do myself. Great content!

@elvenlightseeker Ай бұрын

Hey Ravi - thanks this was really helpful. I'm curious though, we saw record high jump's with interest rates in the last few years (now somewhat stable), how would you manage multiple houses if they go from positively to negatively geared? Would you just start to sell off? Or is there another strategy?

@Tar-Míriel Ай бұрын

Checklist for you: > Do you have a depreciation schedule to claim against tax? > Are you claiming all deductions - interest, insurance, maintenance, rates, property management fees etc? > Are you claiming LMI and borrowing costs over 5 years? > Can you refinance to a lower interest rate? > Are you loading up savings in an offset account to offset interest? > Can you do a small cosmetic renovation to increase the weekly rent amount? > Is your property currently rented at market rate or does your property manager need to do a rent review?

@natsstings9249 Ай бұрын

Hi Ravi, I’ve been watching your videos for some time now and I’m so keen to know your client’s affordability background 😅😅 I’m making about $67k a year before taxes and I feel like this is a faraway dream.

@blakesidebottom9629 Ай бұрын

I've learnt alot from you over the past year

@glennwallace2137 Ай бұрын

Pay debt off faster ( also would like to see a video for lower income earners like myself that works in a blue collar job such as retail that owns their own home)

@melindagibson6358 11 күн бұрын

Just about choked when you talk about the D 😂

@MsChampagneSanity Ай бұрын

Yes yes yes pay off a house in 10 years!

@EzzyEee-v6j Ай бұрын

1. But if you’re positively geared on the investment properties to help pay off the PPR won’t our taxable income be higher? 2. How would we buy more investment properties if our borrowing capacity is maxed already (1 PPR & 1 IP) especially now that rates are at 6%? Buy under a trust? Love the work and info you give out. Cheers

@tomjones4451 Ай бұрын

Equity is risky but rewarding when investment increases and rent increases, therefore holding cost decreases. Long term strategies not get rich scheme for short term.

@markwilliams3245 Ай бұрын

Dont u need to top up the investment property every month? Especially consisdering the cost of ptoperties these days? Thats whats stopping us, as we have heaps of equity in our ppor, but having to top it up every week isnt possible. ??

@LukeOCallaghan-s5x Ай бұрын

So it’s only beneficial if the rent income is greater than the interest only cost of the property? Does the income you make from rent add to your taxable income ?

@jaym5396 Ай бұрын

Hey Ravi. If you have a PPOR, buy another PPOR, rent the first PPOR and turn that into a rental, how does the 6 year rule wprk, if say in 12 month, move back into the original PPOR and what does if any CGT work in this scenario?

@gobiwankenobi Ай бұрын

You can't buy a second PPOR for the 6 year rule to be valid. If you move out of your current PPOR, buy an investment property but then rent somewhere else to live (e.g. rentvest), that's fine and you keep the 6 year rule. But you can't buy another house and go live in it as that becomes your PPOR and the original turns into an investment property for all intents and purposes (nullifying the PPOR 6 year rule).

@matteomascis4784 Ай бұрын

Hi Ravi, Our situation is very frustrating because we can't use our equity due to low income because my partner is on maternity and so the bank won't look into that. We are kind of stuck and we missed in so many opportunity to buy an investment property. How would you handle this situation? Thanks in advance!

@Hellbourne1994 Ай бұрын

What would be the advice for someone like based on this information you are providing? Regarding the Good debt Bad debt as we went in as first home buyers to get our first home. We had to do this do void stamp duty. We definitely want to invest and become investors, I thought in the first home buyer scenario this is the best bet.

@andrewengland12 Ай бұрын

You can also go for fully franked dividend shares if your not able to stretch your budget for other properties

@uberboiz 20 күн бұрын

No property spruiker would recommend fully franked dividends, even if it makes more sense from an investment point of view.

@d.j.z.j Ай бұрын

But this only works for positive geared property??

@Mckee11 Ай бұрын

Would it be bet to buy 3 cheaper properties than 1 more expensive property ??

@Mckee11 Ай бұрын

Pay debt off faster 🙏🙏 great videos

@miketrix581 Ай бұрын

Ravi, can you please do a vid explaining how potential changes to negative gearing policy will affect this type of investing?

@elvenlightseeker Ай бұрын

Think he already did a video on this!

@kingsford2032 Ай бұрын

Ravi what company or bank can lend to buy investment property , because now banks are very hard and is not easy get loan as you say . where can i go ?

@conradomalley5784 Ай бұрын

A broker

@leakena889 Ай бұрын

Pay off debt faster!!

@Pvtepingpong Ай бұрын

6:47 big pause 😅

@hackgolfer7352 Ай бұрын

Then your investment properties are cross collateralised with your actual home, correct?

@PersonalFinancewithRaviSharma Ай бұрын

Incorrect

@hackgolfer7352 Ай бұрын

@@PersonalFinancewithRaviSharma Could you please explain further? If you're using equity from you PPOR as the deposit, and then getting a loan for the purchase, isn't that two properties the bank uses as securities? EDIT: Or are you using a home equity loan?