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@jyattard1081
Жыл бұрын
I cant believe content like this is FREE, Its just amazing. Thanks Fellas xx
@AusPropertyMasteryWithPK
Жыл бұрын
Yeah haha thanks
@healthabundanceforever4222
Жыл бұрын
Your welcome Jy
@blair4377
6 ай бұрын
I know! I just paid the financial planner, this is one part of it, debt recycling! 😆 if u put the money into offset, and borrow 100% for the investment, is it the same as debt recycling ?
@triplea007
Жыл бұрын
Thanks PK for your questions. You were the voice for us flies on the wall. Great guest.
@AusPropertyMasteryWithPK
Жыл бұрын
AMP offers it!
@nottedevil
Жыл бұрын
The product has existed for a while. Called master limits or portfolio accounts. High net worth clients usually have this setup in private spaces. Surprisingly even big banks have this product.
@healthabundanceforever4222
Жыл бұрын
Thankyou Rishi. Nice to know that you dont have to be rich to access this clever set up.
@dejansoldo2646
Жыл бұрын
You do still need the income to justify the portfolio loan. This works when you have a strong equity and income position
@chayneznfayme
5 күн бұрын
Yo John, look up the definition of “humbled”, it doesn’t mean what you think it means.
@conor_kelly
Жыл бұрын
Good video mate, seems the bigger you get the easier it gets. Rich get richer 😀
@SanaagSomaliland
23 күн бұрын
And you get a personalised manager at the bank to help make it even easier.
@MrCLAASS
3 ай бұрын
Ordinary people are not "tapping into their equity" because their income and living expenses is the limiting ceiling on their master limit.
@martyday3760
2 ай бұрын
Could I get clarity of the 'who this isn't for' portion of this video please? If we have a combined income of $200K, is that still medium income earner? And is this product only available to individuals or to couples as well?
@DIEGOARTESAO
Жыл бұрын
Firstly where are the properties of 500K, secondly how can the master limit remain after rate going up, inflation and maybe some reduction of salary, would that still be possible to loan and buy and what is considered as median to high earnings?
@johnm3178
Жыл бұрын
He said the master limit is locked in for 10 years regardless of those factors.
@f1aziz
Жыл бұрын
Sounds good, wondering if my fixed rates that I am happy with, would get renewed to the current market rates with this setup. I just looked at the current market rates, yikes, nightmare. Also, doesn't look like it's a mainstream product, only AMP seems to have a page on it.
@chayneznfayme
5 күн бұрын
You don’t need to refinance your existing loan. You don’t even need a Master Limit product - they’re just more flexible than applying for loans every time you need to shift money around.
@susmusmanoj112
Жыл бұрын
Hi guys the discussion just went over my head 😥😥 Sorry is am totally bad in finance ... Could u please advise in very very easy terms of what debt recycling is ...sorry I watched twice but didn't understand the jargons not the problem question
@AusPropertyMasteryWithPK
Жыл бұрын
It’s basically converting bad debt to good debt but refinancing it out and using it for investment property
@nicolleb2858
Жыл бұрын
I am with you.. I watched twice and liked how PK asked to explain it in simple terms. What we need is an actual example.
@erhan5945
Жыл бұрын
@@nicolleb2858 example 1: using your offset funds to purchase property/use it as a deposit; that additional interest you pay is not able to be classified as a tax deduction. Example 2: move those offset funds into a separate account. In order to do that, consult with your bank/broker and confirm the bank will allow you to move those funds first into your actual home loan, and then have them move that amount into a separate acc that they create. You use those same funds in the newly created account to purchase shares/investment property and the interest incurred becomes tax deductible.
@12345xfire
Жыл бұрын
Good stuff guys. Just at about 6:30 though, it's quickly mentioned debt recycling a split into a few asset classes, one being super. You can't do that, the interest would be non deductible. You can only debt recycle into shares/ property outside of super.
@AusPropertyMasteryWithPK
Жыл бұрын
Thanks! Feel free to chat with John or your broker about that ..
@12345xfire
Жыл бұрын
@@AusPropertyMasteryWithPK we've currently got 10 splits with CBA! It's a very organised debt recycling mess.
@AusPropertyMasteryWithPK
Жыл бұрын
@@12345xfire omg!
@pragathiagrawal1280
Жыл бұрын
Hi, very useful advice. Could you please direct to a site or document for this concept?
@jamesm6341
Жыл бұрын
Hey Pk can you please cover the 40 year mortgages offered now. Thank you
@AusPropertyMasteryWithPK
Жыл бұрын
Good idea!
@MrGeddes85
4 ай бұрын
ok so when he said high earner, would this be over 150k.? also to do this, one would need equity n the investment property as they would borrow the investment loan up to the 80%lvr capaity? that "draw down" would then be put into the loan for the owner occ to offset/pay down the principle on the owner occ property? would i be correct in my understanding with this PK? to be able to do this can it be done with a split or does it need to fall under this "master limit" type structure? would love to hear your thoughts on this.. also mate, love your content ❤
@kaushaltrvd
Жыл бұрын
Great video PK and John!! Just wanted to clarify that Master limit and your borrowing capacity are the same? If so, using a Master limit would have been better when the interest rates were low and borrowing capacity was higher as you are locking the Master limit?
@AusPropertyMasteryWithPK
Жыл бұрын
Yes! I believe so! But still good to do it now before further rises
@healthabundanceforever4222
Жыл бұрын
Correct - you can apply to extend the limit wen assessment rates start to drop again. In the meantime, you can start recycling debt.
@erhan5945
Жыл бұрын
Am I correct in stating that the ‘master limit’ would also move in value and is not a static sum as you pay down more debt, you are able to extract further equity (pending serviceability) right?
@dilipkonar6089
Жыл бұрын
Its a great concept, How do I get more details on it.
@shivaraj6
Жыл бұрын
I am concerned if this is classified as tax scam PK. I will be checking with ATO. If came true, it’s amazing. How can one transfer owner occupier debt to IP and still claim interest as tax deductible cost.
@AusPropertyMasteryWithPK
Жыл бұрын
Check with John, AMP too!
@healthabundanceforever4222
Жыл бұрын
Shiva - good pick up. You cant claim the owner-occupied debt sitting on your investment property as a tax deduction. The "purpose" was for personal reasons so its not tax deductible.
@shivaraj6
Жыл бұрын
PK, having looked at the detail, I found it different than what I initially thought. What I am struggling now to understand is why this strategy (complex and costly) is better than my strategy e.g. paying OO loan out of my savings directly and drawing equity on a seperate account (at OO rate) and then invest that money with interest deducted. My initial concern as an accountant was based on the understanding of moving your OO loan to IP line of credit straight with interest deductible. Sorry for misunderstanding.
@erhan5945
Жыл бұрын
Shiva, you just need to remember that it can only be tax deductible debt when you spend it for investment purposes. If you were to pull money out from your offset for an investment, that amount is not tax deductible. If you shift that same amount out to a separate account, and all those funds are used for investment purposes (hence no contamination of funds) it becomes deductible debt.
@TheKenduMillionaire
Жыл бұрын
@@healthabundanceforever4222 Incorrect sorry mate. How is works is not with an offset as that is your money, but this works on a redraw facility. When you pay cash towards a redraw, you have paid the loan down. If you draw x amount and put it towards income producing assets, then that x amount you have now redrawed is for investment purposes, and becomes deductable.
@tonyhunter1903
8 ай бұрын
Do you have to own everything under this umbrella in your person name?
@neck_minnet8939
Жыл бұрын
The explanation needs to be longer. Also PPOR interest rate is lower why would you move debt to IP loan, have to pay more and keep track of the lowest the loan was for tax. Heaps better just to offset PPOR. Any research I do seems to lead back to this guy as well. Is he the sole broker for this product? Seems a bit scamie but I have heaps of faith in PK so I’m just confused
@AusPropertyMasteryWithPK
Жыл бұрын
It’s not his product.. it’s an AMP product.. just get in touch with him and clarify 👍🏼
@neck_minnet8939
Жыл бұрын
Thanks. Love your vids. I’m at IP number 4. Your content has helped me to take action
@AusPropertyMasteryWithPK
Жыл бұрын
@@neck_minnet8939 love it
@healthabundanceforever4222
Жыл бұрын
Hi Neck. Kudos to you for doing background checks. I dont own a bank! LOL. To answer a few of your questions; 1) some lenders will offer IP debt at owner-occupied rate, 2) You can still have offset your PPOR with this structure. Ultimately its not well understood but a legitimate product type offered by lenders. I hope that helps.
@erhan5945
Жыл бұрын
Even if your debt is based on IP interest rates, if you’re paying enough in the 45% tax bracket, you’re getting a 45% discount on the interest you have paid.
@liamfrost1037
Жыл бұрын
Wouldn't this open you up to cross collateralisation risk?
@AusPropertyMasteryWithPK
Жыл бұрын
Good question for John! I don’t believe so but will let answer
@healthabundanceforever4222
Жыл бұрын
Yes and No. You can always remove one of the properties. The master limit will go down.
@officialspock
Жыл бұрын
I don't understand how it works
@AusPropertyMasteryWithPK
Жыл бұрын
Just get in touch with John or your broker
@mannylaris9925
Жыл бұрын
14:25 hey PK does the master limit remain even if your income changes? That’s the assumption based on the CC example he used
@AusPropertyMasteryWithPK
Жыл бұрын
I think a good one to ask him!
@johnmanciameli9752
Жыл бұрын
Hi Manny The master limit stays locked in place for 10 years even if your future income drops. Just like your credit card.
@pthai88
Жыл бұрын
Transferring personal debt and calling it a deductible debt is tax avoidance. Red flag to the ATO. Shows like this should have caveats say those watching this must seek professional tax advice.
@AusPropertyMasteryWithPK
Жыл бұрын
Yes 100% we say that in the episode, in description too
@harshsadana5257
Жыл бұрын
What if this works like that ( I m guessing) say you have 200K home loan equity, in this product you get a loan against that with 80 LVR of 200 K equity ie 160K as say investment loan 1 then invest 160 K in shares. Now the interest on this 160 k loan is tax deductible. I m assuming separate details eg statements interest etc available for this investment loan 1 as for a completely independent separate account. Further I believe any equity developed in investments loan 1 could also be withdrawn at 80 LVR to setup further loans. Anyone knows about any other product apart from AMP ?
@neck_minnet8939
Жыл бұрын
Seems like this only works if you evade tax with it. But no one wants to say it out loud.
@AusPropertyMasteryWithPK
Жыл бұрын
It’s perfectly legal. There’s difference between avoidance and evasion
@shivaraj6
Жыл бұрын
Both are crime PK. You may be referring to Tax Planning rather as being legal.
@AusPropertyMasteryWithPK
Жыл бұрын
@@shivaraj6 tax avoidance is just strategising how to minimise tax, people do it every day
@jamesthompson4971
Жыл бұрын
@@AusPropertyMasteryWithPKYou probably shouldn't use the word 'avoidance' mate because that is a crime, tax 'minimisation' is better, surprised you don't know this tbh.
@erhan5945
Жыл бұрын
Debt recycling is legal. As the late Kerry Packer said “if anyone in this country doesn’t minimize their tax, they want their heads read, because as a government, I can tell you, you’re not spending that well that we should be donating extra”
@desmorrow2545
Жыл бұрын
It sounds like its just a Line of credit for up to 3million.
@AusPropertyMasteryWithPK
Жыл бұрын
That is one facility within the overall umbrella of a master limo
@healthabundanceforever4222
Жыл бұрын
Hi Des - I hope you are well. Pplease ask Kristin if you qualify for this product and or if you want to have a zoom call with me. Thank you for uploading your documents.
@dsinghr
Жыл бұрын
Your eyes are looking weird in the thumbnail 😂
@AusPropertyMasteryWithPK
Жыл бұрын
They are weird all the time
@sunitapradhan3251
5 ай бұрын
Is it possible to get John's email Id or contact details please . Many Thanks
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