How debt recycling can make you money

Debt recycling explained: how Australians turn home equity into investments In this Friends With Money episode from Money magazine , host Ryan Johnson chats with mortgage broker Joseph Daoud (It’s Simple Finance) to unpack debt recycling in plain English. They explain how splitting your home loan or using a line of credit lets you access equity to invest in property, shares or a business, with potential tax benefits from deductible interest and investment expenses. They work through a $1 million home example, outline who this suits (often higher-income earners and many self-employed borrowers), and step through setup essentials: pick the right lender and structure (often interest-only), team up with a good broker and accountant, and keep the investment purpose clear. They also flag the big risks—bad advice, risky assets, rising rates, thin buffers—and why retirees or lower-income earners can be overexposed without a solid exit plan. Timestamps 00:00 What debt recycling is 01:09 How the structure works 02:38 Who it suits 04:33 Goals and tax benefits 05:35 A real case study 08:02 Setting up the loan split 11:23 Choosing investments 12:13 Risks and rate rises 16:38 Which pros to call 17:34 Who should avoid it 20:43 Three rules and wrap Podcast Links: Listen on Apple Podcasts Listen on Spotify Money Website YouTube Podcast Playlist Email Us: podcast@moneymag.com.au Get stories like this in our newsletter: bit.ly/3GDirbR

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How debt recycling can make you money is an episode from Friends With Money by Money Magazine.

This episode is 22:56 long.

This episode was published on Mar 17, 2026.

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