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Debt recycling is a strategy that can help you build wealth over time.

At Fync, we pride ourselves on being experts in setting up mortgages compatible with debt-recycling strategies.

Debt recycling strategies to build wealth

We understand the intricacies of debt recycling and can help you to set up a loan that can use the equity in your home to take advantage of the potential tax benefits and increased wealth that debt recycling can offer.

What is Debt Recycling?

Debt recycling is a strategy that can help you build wealth over time.

It involves using the equity in your home to invest in income-generating assets, such as shares or investment properties. Debt recycling aims to generate additional income from your investments, which can then be used to pay off your home loan faster.

One of the key benefits of debt recycling is the potential for tax benefits.

By using the equity in your home to invest in income-generating assets, you can create a tax deduction for the interest on the investment loan. This can reduce your overall tax bill, a significant benefit for high-income earners.

Debt-recycling Checklist

For a debt recycling strategy to work, you need:

  • A home loan, with equity in your home

  • A regular income that is generated independently of this debt recycling strategy. This income can deliver a surplus cash flow to cover the interest payments on your investment loan

  • A long-term investment focus

  • A willingness to increase your debt and hold an investment loan

  • Tolerance for risk and short-term fluctuations in investment value

  • To consider income protection insurance, which may provide replacement income in case you’re sick or injured and unable to work.

Debt recycling can also help you to diversify your investment portfolio and achieve your financial goals more quickly. Investing in a range of income-generating assets can reduce risk and increase returns. Additionally, the extra income generated from your investments can be used to pay off your mortgage faster, allowing you to build wealth over the long term.

If you're considering debt recycling, it's important to seek advice from a qualified financial adviser and carefully consider your options before starting. Debt recycling can be a complex strategy, and it's important to understand your goals and risk tolerance before investing. With careful planning and a sound investment strategy, debt recycling can be a powerful way to build wealth over the long term.

Considering debt-recycling?

Debt recycling, as a strategy for wealth generation, and can be advantageous if you're a particular kind of investor who is at ease with its risk-reward dynamics.

Unsure if debt recycling aligns with your financial aspirations and wealth-building journey? Reach out to our team for a personalised consultation.

*Disclaimer: Please note that the information provided in this communication is for general informational purposes only and should not be construed as professional advice. It is not intended to substitute for personalised financial, legal, or tax advice. Please consult a qualified professional before making any decisions based on the information provided.


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