Great work Ravi. Love Part 1 and 2. Part 3 would be great if you have the content. You could cover some specific strategies of turning bad debt into good debt such as debt recycling for instance for those who bought their principal place of residence before investing.
@PersonalFinancewithRaviSharma It'd be great if you could break down how this actually works in a bit more detail. I understand the concept, but actually facilitating the interest-only loan does take away a lot of the realised "tax free money" when refinancing a property asset that has appreciated in value. Yes if it's an investment property all of that interest is tax deductable, but you still need to be able to stay afloat and make interest payments during that financial year. I know fixed interest rates would mitigate the risk and allow you to calculate how many years the newly gained "tax free money" would sustain you for but you would still be having to refinance every couple of years to keep extending the interest-only period (Although that's not necessarily a bad thing assuming your property continues to appreciate).
So does the bank actually lend you the money generated from asset growth of your IPs just as long as your good with LVR? Fair enough if you’re redrawing towards getting more IPs, that reasoning would be accepted by the banks but can you use a reason of using your equity as a yearly income? I suppose that’s where me head is at right now 😊👍
What happens when you go to sell the property and get slammed with capital gains tax and you have borrowed the majority of the equity which requires paying back?
i think that would be a silly move, why would you sell a property with no equity left on it? You would sell a property with equity on it so that you can use that equity to pay back the debt or reinvest. Depends on what part of your planning cycle you are on
@@DesignsByIFR It's not necessarily a silly move if the borrower cannot service the debt and runs the risks of the lender repossessing the property anyway.
Ravi, honestly I appreciate all your videos. I’m one of the Ogs been following you for a longtime I don’t even know how long but I have watched every single of your videos some twice or even three times ! I’m about to make some moves and it’s all thanks to your education thanks mate ❤
Thank you, Ravi. I'm interested in hearing a strategy to prepare for the potential event of acquiring a permanent disability suddenly rendering one unable to work, after acquiring this debt. Appreciate your great work🎉
Great video. Do you think that one day the government will take steps to slow down/ stop tax benefits on investment properties that creates this bigger wealth gap?
Hey Ravi. Love ya video mate. Keep em coming. I'd like to know how to face down the fear. I'm 50 n am rebuilding after divorce a while ago. I am in my own home again now (Perth) with OK equity but amtoo old to start again if investing goes wrong. What do you suggest?
How does one increase their borrowing power? I have equity from my investment properties, but I am unable to borrow more from the bank because of my lack of borrowing power. Perhaps a video on that would be great. :)
So would that mean if I made 100k a year. I could take 100k equity out to live on which is tax free and then use my taxable income of 100k to pay down the property and get it tax deductible?
If your buying assets and the dollar inflates your assets also inflate but the debt stays the same.... making it easy to pay down the debt well before 50 years.
@@tiptopmuffin Then i lose the tax effectiveness of that debt and question whether or not if i choose to get that debt back will the banks ever give me that level of debt ever again?
Watch PART 1 - th-cam.com/video/hDoxY0z2Zi4/w-d-xo.html
Part 3: can you tell different ways to invest the tax free income which the rich people do, to increase or gain revenue from.
You can invest in the same things you invest taxed income
Great work Ravi. Love Part 1 and 2. Part 3 would be great if you have the content. You could cover some specific strategies of turning bad debt into good debt such as debt recycling for instance for those who bought their principal place of residence before investing.
@PersonalFinancewithRaviSharma
It'd be great if you could break down how this actually works in a bit more detail. I understand the concept, but actually facilitating the interest-only loan does take away a lot of the realised "tax free money" when refinancing a property asset that has appreciated in value. Yes if it's an investment property all of that interest is tax deductable, but you still need to be able to stay afloat and make interest payments during that financial year.
I know fixed interest rates would mitigate the risk and allow you to calculate how many years the newly gained "tax free money" would sustain you for but you would still be having to refinance every couple of years to keep extending the interest-only period (Although that's not necessarily a bad thing assuming your property continues to appreciate).
It’s fantasy
So does the bank actually lend you the money generated from asset growth of your IPs just as long as your good with LVR? Fair enough if you’re redrawing towards getting more IPs, that reasoning would be accepted by the banks but can you use a reason of using your equity as a yearly income? I suppose that’s where me head is at right now 😊👍
What happens when you go to sell the property and get slammed with capital gains tax and you have borrowed the majority of the equity which requires paying back?
I'd love to hear Ravi's answer to this question.
i think that would be a silly move, why would you sell a property with no equity left on it? You would sell a property with equity on it so that you can use that equity to pay back the debt or reinvest. Depends on what part of your planning cycle you are on
@@DesignsByIFR It's not necessarily a silly move if the borrower cannot service the debt and runs the risks of the lender repossessing the property anyway.
I think that’s the catch…you don’t sell it
A better strategy would be offsetting your negatively geared properties with positively geared ones with lower capital growth
Keep going Ravi, we are all watching.
Fantastic video! Part 3 would be good
Ravi, honestly I appreciate all your videos. I’m one of the Ogs been following you for a longtime I don’t even know how long but I have watched every single of your videos some twice or even three times !
I’m about to make some moves and it’s all thanks to your education thanks mate ❤
The key is serviceability in high interest rate environment to make this work (he mentions in Part 1)
Thank you ! Part 3 please
Thank you, Ravi. I'm interested in hearing a strategy to prepare for the potential event of acquiring a permanent disability suddenly rendering one unable to work, after acquiring this debt.
Appreciate your great work🎉
Great stuff, thanks for sharing. Part 3 please
Great video. Do you think that one day the government will take steps to slow down/ stop tax benefits on investment properties that creates this bigger wealth gap?
Would love to see how you do it? Not your exact figures but if u draw down equity every year For income, etc.
He won’t show that don’t worry. That’s in the fiction segment of your local library
Any thoughts on XRP?
Great video Ravi!
Part 3 100 percent my brother what an explanantion
Can you suggest a good mortgage broker pls ?
Hey Ravi. Love ya video mate. Keep em coming.
I'd like to know how to face down the fear.
I'm 50 n am rebuilding after divorce a while ago. I am in my own home again now (Perth) with OK equity but amtoo old to start again if investing goes wrong.
What do you suggest?
Part 3 baby❤
Thanks for speaking more on this!
Part 3 please 🙏
Part 3 us where you live on the street
Part 3 please so i can get to Vegas to double everything 🤘
Ravi when you say Tax free income can you break that down for me and advise how you miss on paying TAX?
You don’t pay tax on debt 💸
part 3
How does one increase their borrowing power? I have equity from my investment properties, but I am unable to borrow more from the bank because of my lack of borrowing power. Perhaps a video on that would be great. :)
Can’t change bank rules
Part3 please
Unless you have the money not assets to cover it when it goes belly up it's not a good idea GFC proves this
what sort of people went belly up in the GFC? the rich or the PPOR serviced with a single low income?
Great video mate! Keen to have a chat
Dude, that goes way too fast! 😬😮💨😒 Sounds like there's a lot of information though. 😉
What do you do in a year where there is no capital growth? You cant increase your debt if the properties value has not increased.
obviously you should be in a position to service it independently
You start drinking heavy liquor, and scream at passers by your homeless shelter and tell them you had it all until you watched a TH-cam video
So would that mean if I made 100k a year. I could take 100k equity out to live on which is tax free and then use my taxable income of 100k to pay down the property and get it tax deductible?
You need to pay tax on your earned income. What you do with it after tax is your problem
👍
nom nom nom debt for life maybe pay it off in 50 years in the inflated dollar ;)
If your buying assets and the dollar inflates your assets also inflate but the debt stays the same.... making it easy to pay down the debt well before 50 years.
@@tiptopmuffin Then i lose the tax effectiveness of that debt and question whether or not if i choose to get that debt back will the banks ever give me that level of debt ever again?
@@adrianplayer-propertyinvest i'd rather be making money and paying tax than losing money and not paying tax.