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TPC Gold | Can I Use One Property to Fund Two More?

This snippet is from one of our previous episodes: Q&A – How to Avoid Poor Loan Structure 

Got equity in one property and wondering if you can use it to buy two more? You’re not alone! 

In this TPC Gold snippet, Bryce and Ben answer a listener’s question about using equity as a deposit across multiple investment properties — and why the way you structure your loans can make or break your long-term strategy. 

They unpack: 

  • How you can use one property’s equity to help fund more than one purchase 
  • Why standalone lending (not cross-securitisation) matters 
  • The dangers of “lazy” loan structuring from brokers and banks 
  • Why flexible splits now can mean greater borrowing power later 
  • A hidden tip on how loan-to-value ratios (LVRs) can boost your serviceability 

It’s a must-listen for anyone in the accumulation phase who wants to keep their strategy clean, flexible and growth-ready. 

Tapping into Equity? What to Watch Out For!

Setting up your investment loans correctly from day one is critical — especially if you’re planning to build a multi-property portfolio. 

Book a free consultation with Empower Wealth’s Mortgage Broking team to check your structure, protect your borrowing power and avoid costly traps like cross-securitisation

__________________

If You Enjoyed TPC Gold | Can I Use One Property to Fund Two More? You Might Also Like:


Transcript

Bryce Holdaway
Alright, so we’ve got another question here from Shanki, Ben. Regarding loan structure, can I use the equity from one property to pay the deposit for two separate investment properties? And the last part of the question, is it similar to collateral?  

Ben Kingsley
So the answer to that is yes, you can and you don’t have to cross-securitise to do that. In fact what you could do depending on how much visibility you want to have on your loan splits… So let’s say, some people in Sydney who might have a lot of equity; let’s say they’ve got $300,000 or $400,000 worth of equity and they want to get that out as a lump sum. They could potentially use that for four properties, subject to them having strong enough income to get the borrowing power to buy all of those properties.  

Now some might choose to just have that as one loan split, knowing that it’s a deposit for each of those properties, but others potentially like to split it out to say maybe the 25%. So it’s the 25% because the property itself is going to have 80% against it, and that makes up the 105% that they’re going to borrow to get that particular property.  

So the answer to that is yes, you can. And depending on how you want your investment savvy broker to work with you, they will sort of make some recommendations on the different types of ways in which you can structure it. But the fundamental thing is that it would be a separate loan structure from your non-deductible home, if it’s your home you’re releasing it from. And you might split that out again into a couple of extra splits, but that’s how it’s done.  

Bryce Holdaway
Because that came from the fact that one of the sins we talked about in the webinar, Ben, was to not cross-securitise your lending. You gotta do it standalone. So it’s a good question. It’s a variation. We’re still doing standalone, but you can see where Shanki was going with that because it can be confusing.  

Ben Kingsley
Because what a lot of lazy brokers and bankers do, okay, because it gets a little bit more complex… in some cases you might have two or three loan splits. Now it doesn’t matter what they’re secured against, but there’s two or three loans, and the purpose of that money might have been for 1 Smith Street, right? And it doesn’t matter that it’s come from 1 Jones Street and 1 Errol Street and 1 Johnson Street. It doesn’t matter if there’s a split from that. But that just means that that property might have three or four loans that you’ve got to remember the purpose of that money was for that property. But the lazy ones, the ones who think “I don’t want to teach my clients how to do this” will just go, let’s combine them all together and let’s cross securitise them. And then it’s nice and easy for you. So that investment property just has one loan and that’s all you need to worry about. For me, I think you’re robbing the customer of flexibility, you’re robbing the customer of future potential, you’re robbing the customer of getting extra borrowing power. All of that. 

Bryce Holdaway
The money they pay in LMI.  

Ben Kingsley
Yeah, well, that’s right. If it’s global and they go over that 80% and in some cases, as we’re seeing now, some lenders, and this is a new bit of gold… is some lenders are servicing using their servicing calculator based on LVRs. So if you can get that LVR down to 70 or even below 60, their servicing calculators are more relaxed, which means you can borrow more money. So again, if you’re in the accumulation phase and you can control a bigger asset, then the reality is there’s going to be more in your back pocket.   

Now that always still comes back to the one fundamental thing, and that is the income to support it and not just for today but into the future. We cannot stress enough that our podcast is not about gung-ho, must get out there, must do everything now. It’s about sensible, strategic, well thought out, tailored money management solutions and then execution and implementation.   

Bryce Holdaway
We’re not get rich quick Ben. We’re get rich safe. 

Ben Kingsley
We are. 

Bryce Holdaway
So there you go folks. 

 

550 | How to Stack the Pain (and Why It Works): A Behavioural Guide to Better Money Habits (LIVE Q&A from Bali)

Folks, this week we’re reporting LIVE from… BALI?! 🎉 

That’s right — we travelled to Indonesia with some amazing TPC community members to support the John Fawcett Foundation, where we witnessed firsthand the life-changing impact of their work restoring sight through cataract surgery. 

Together, we raised an incredible $74,592.98, which funded 368 cataract surgeries, 1,901 patient screenings, 719 pairs of glasses, 12 prosthetic eyes, and 600 bottles of eye drops — changing lives in the most powerful way. 💛 

And while we were there, we thought… 

What better moment to hit record and answer some of the most insightful, practical, and real-world property questions from the legends who joined us on the ground? 


Here’s what we cover in this special ep: 

🔹 “What buffers?” — Katrina & Rhys get honest about money habits and building a safety net when saving feels out of reach. 

🔹 “How do you invest with lumpy income?” — Prue, a farmer with teens in boarding school, asks about structuring loans when cashflow isn’t consistent. 

🔹 “How do you find an accountant who actually gets property strategy?” — Will wants more than generic advice. 

🔹 “What happens when your IO loans expire?” — Adam shares his $3.4M portfolio dilemma. 

🔹 Plus: Are lifestyle apartments in places like Noosa or the Gold Coast really worth it? 

A HUGE thank you to each and every one of the amazing TPC community members who joined us on this life-changing trip and helped us create this unforgettable episode. Listen now!  


Resources Mentioned: 

  • Bryce’s 50th Charity Event: Together, we raised an incredible $74,592.98! 
    In honour of this milestone, Bryce, the TPC team, and 22 amazing community members travelled to Bali to support the John Fawcett Foundation.  
     
    Together, this donation funded 368 cataract surgeries,1,901 patient screenings, 719 pairs of glasses, 12 prosthetic eyes, 600 bottles of eye drops, and more — changing lives in the most powerful way. 💛  
     
    To everyone who donated, shared, or supported in any way — thank you. This wouldn’t have been possible without you. If you’d like to learn more about this incredible cause, or still wish to contribute, you can do so here >> 

Questions We Answer 

Q1) “Are apartments and townhouses in premium lifestyle markets like Gold Coast and Noosa a smart investment?” from Carolyn

Hi Bryce and Ben,

My questions are largely around the Gold Coast and Sunshine Coast Property Markets and particularly Apartments/Villas/Townhouses. I hear the land does the heavy lifting and houses are a better investment (and yes for the primary residence) but I’d like your thoughts on buying into apartments in quality developments e.g. the Gold Coast and Noosa. Does location do the heavy lifting?

Do you have any stats on capital appreciation of buying new vs buying older in these or similar areas?

Seems to be greater value in depreciation in the first five years of a new build? And then when do extra costs e.g. increases in body corp/maintenance etc. kick in on both in terms of timeframes?

Is there an ideal hold time for an investment property for it to break even for portfolio growth and to leverage to the next one? (Assuming you are starting to grow a portfolio)

Also, is it generally 2 years of capital appreciation to cover stamp duty, purchasing and selling costs as a rule of thumb? When is buying off the plan a good idea vs established, depending on availability, location and personal requirements.

The Select Residential Reports we had access to from yourselves 2 years ago indicated growth percentages for Noosaville Units ( and Gold Coast was much the same) as:

  • 2024: 3.6%
  • 2025: 7.2%
  • 2026: 10.3%
  • 2027: 13.2%
  • 2028: 16.4%

Do you feel this remains relevant with such economic uncertainty and do you have any update on this for the next 5 years?

Having 2 daughters in their early 20s who will want to stay in SE QLD, what is the future of development with access to first home buyers schemes etc. likely to be like? Is it better to help them out in a family trust situation with property? I’m sure some of this will be covered in your new book however any insights would be greatly appreciated.

I’d also like to say thank you for your podcast which did lead me to the Advisors day in Brisbane last year and I am now the proud owner of a CERT IV in Mortgage Broking, it’s like getting a pen license. Ha Ha

I’ve secured an opportunity to commence a Part Time Mentorship in July with a Broker aligned with Purple Circle who is located in Redcliffe, north of Brisbane.

If you have 5 minutes over the course of the trip I’d love to make sure I’m on the right track to becoming an “investment savvy mortgage broker” and combining my love of property and finance. Ultimately, I’d love to work in the buyers agency area also. Whilst I’m currently ensconced in my own swimwear retail businesses I feel this is a good sideways move and a great basis to learn lots more about the property world.

Thanks so much

Carolyn

 

Q2) “What buffers?” from Katrina & Rhys  

Bryce and Ben, we are terrible savers. So bad we buy houses so we don’t spend money. We have had a budget for years so have always known we overspend. If we want to do something, we make it happen. I can hear you saying “pay yourself first” and “put the money somewhere you can’t see it”. The reality is we are flying through life on a buffer of luck with the flag of determination waving in the air.

Picture that little car on the monopoly board, $20 to their name and looking at what they can mortgage to buy park land. That’s us.

No amount of self help books or podcasts can save us. We have 2 investment properties now, but by not building up our savings buffer and reducing what we owe on our PPR, we are concerned we are going to fall short of our retirement goal.

What’s the secret Bryce and Ben, tell us how we can build up our savings buffer?

My other question is, how do you find like minded individuals to spend time with and discuss property. I’d love to talk about investment properties all day but Rhys would find a deserted island and set up a new 1 bedroom PPR. 

 

Q3) “Is there such thing as a savvy-structure based accountant?” from Will  

My partner and I spend a lot of time learning about different ways just trying to structure bank accounts, companies, trusts, etc. so much so we’re totally confused. We ask accounts and they give us very basic responses. Are we asking the wrong questions? Are we asking the wrong people?  

Is there such thing as a savvy-structure based accountant that sees the future and gets excited about how to strategically build a small, everyday couples’ portfolio? One that understands business and personal investment portfolios and how to have the two complementing each other, not working in isolation. Or is it only the spruikers that make us believe that such people exist?” 

 

Q4) “Finance, loan structures and investment properties for business owners with a highly variable income (farmers)?” from Prue 

Hi Ben and Bryce, 

Thanks so much for this incredible opportunity to travel with you and your families on this life changing event. I have learnt so much from both of you through all the wisdom you have given. 

My question relates to being a business owner with a highly variable income (farmers). What suggestions do you both have in relation to obtaining finance, loan structures and investment property purchases for people in this situation? 

We have made a profit farming for the last 20 years except last year due to terrible farming conditions. 

My husband and I are both 43 with 3 teenagers, (2 of them are at boarding school $$). We have one investment property in Adelaide being used as an Airbnb, that we can access when we visit our daughters. Are investment properties a good idea when we have a lot of capital already tied up in farming land? 

Thanks so much. 

  

Q5) “What if serviceability becomes an issue when IO loans expire?” from Adam  

My current portfolio is $3.4mill. LVR = 59%. Loans all IO. $1.64mill in personal name (x3 resi), $380k in a trust for one commercial property. Personal income $100-120k (happy to share more details of portfolio if needed). I’m concerned when these come off IO in 2027 and I go to refinance that banks will not lend to me due to serviceability of income. 

Ideally, I would like to keep all (as I’m servicing these fine), but if I did have to have to sell, how should I assess which property/s to sell? Considering location, yield, future growth potential, land size for future development etc. If I had to sell, I am considering re-investing profits into commercial to help supplement my income. Turn the portfolio cashflow positive to help with future lending and live a more fulfilling/adventure rich lifestyle sooner than planned. Would love to talk in depth with you guys on this and share any advice you might have.

Thanks, Adam. 

 


Timestamps  

  • 0:00 – How to Stack the Pain (and Why It Works): A Behavioural Guide to Better Money Habits (LIVE Q&A from Bali)  
  • 1:22 – We’re recording this from Bali for Bryce’s 50th!  
  • 3:32 – Q1) Are apartments and townhouses in premium lifestyle markets like Gold Coast and Noosa a smart investment? from Carolyn  
  • 4:16 – The fundamental drivers of long-term growth in coastal markets 
  • 6:55 – What really makes a property “investment grade” in these lifestyle locations? 
  • 9:13 – Role of Depreciation in New Builds vs. Established Properties  
  • 11:11 – Lifestyle drivers in Noosa  
  • 13:04 – How to find where the next generation wants to live (+ why this research matters!)  
  • 16:51 – Why caravans are still holding their value  
  • 17:53 – Q2) “What buffers?” from Katrina & Rhys 
  • 20:50 – What does providing the best opportunity for your kids look like?  
  • 22:59 – How does NOT having a buffer affect them?  
  • 27:17 – The #1 driver for behaviour change  
  • 29:45 – What does stacking the pain look like?  
  • 35:05 – Q3) “Is there such thing as a savvy-structure based accountant?” from Will 
  • 36:03 – What an honest, professional Accountant looks like   
  • 40:42 – The complexity of structures & trusts  
  • 46:32 – Is there a single best solution?  
  • 48:42 – Q4) “Finance, loan structures and investment properties for business owners with a highly variable income (farmers)?” from Prue 
  • 49:47 – Dealing with inconsistent income  
  • 53:00 – The importance of liquidity & diversity for farmers  
  • 57:00 – Q5) “What if serviceability becomes an issue when IO loans expire?” from Adam  
  • 58:44 – Forming lender relationships & building buffers  
  • 1:04:22 – How to build a portfolio that balances growth today and cashflow later 
  • 1:08:57 – Thank you to all our amazing guests + wrap up from Bali!  
  • 1:10:19 – Together, we raised an incredible $74,592.98!

 

TPC Gold | You’re Rentvesting… But Have You Set It Up Right?

This snippet is from one of our previous episodes: Q&A: Loan Structure for Rentvestors and more! 

More and more Aussies are turning to rentvesting—renting where they want to live while investing where they can afford. 

But while rentvesting is a smart strategy for many, there’s a crucial piece of the puzzle most investors overlook… 

Have you set up your bank accounts and loan structure correctly? 

In this bonus snippet, Bryce and Ben answer listener Aaron’s question about how to manage money when rentvesting—and break down the banking structure you should be using to get the most out of your investment properties. 

They unpack: 

  • Why your offset account placement matters (and how it can save you money) 
  • Whether to have one account or multiple for different properties 
  • The bucket system that simplifies cash flow and protects tax deductions 
  • Why filling your offsets before making extra repayments could be a game-changer 
  • How to structure your loans from day one to keep your options open later 

Don’t let a poor setup derail your rentvesting strategy…

Far too many investors lose thousands by not getting their structure right from the start. 
 
Book a free consultation with the Mortgage Broking team at our sister company Empower Wealth and make sure your rentvesting strategy is built to performtoday, tomorrow and long into the future. 

__________________

If You Enjoyed TPC Gold | You’re Rentvesting… But Have You Set It Up Right? You Might Also Like:


Transcript

Bryce Holdaway
Here’s the next one Ben, from Aaron. 

Aaron
Hi, Ben and Bryce. My name’s Aaron. Absolutely love your podcast. I binge listened to 220 odd episodes in three months when I first found out about it. I’ve just got a question in regards to structuring your bank accounts. We rentvest. Understand if it was a principal place of residence, you’d want all income coming into that offset account. But because we rentvest, just wondering, do you have one bank account where all the rent and all the mortgages come out from? Or do you have a separate bank account for each property where the rent and subsequent mortgage repayment comes out of? Didn’t manage to hear anything about structural bank accounts in any of the podcasts. So apologies if I’ve missed it and you have discussed it. But I don’t think I have heard anything about it. So very interested to hear your response on that. Thanks again guys, you guys are absolute legends. Cheers. 

Bryce Holdaway
Thank you Aaron for binge listening to 222 episodes in three months. I think that would have been some effort. They probably don’t want to hear our voice for a bit there.  

Ben Kingsley
Well, he’s probably right too, in the sense that we do a lot of our lending structure explanations in some of the webinars we do and certainly in some of the visual teachings we do because it’s hard to talk about without demos. But I’m going to have a go, Bryce. I’m going to have a go. So here we go, Aaron. In theory, you’ll always have a minimum of two accounts relating to your investment purchase. You will have, because we uncross-securitise, so we don’t cross-securitise in terms of the lending structures that we do. So you’ll have a loan of up to 80% against the investment property.  

Now we all know that when we purchase a property, we need to work out what the remaining costs will be to finish off that purchase. So if we’ve got 80% against that property, the other 25% (meaning the other 20% of the value of that property plus the 5% for costs) have to come from somewhere else to complete. We call that funds to complete. So in a lot of cases we want to use equity out of an existing property, which is hence introducing that second loan as opposed to paying cash. So some people might choose to pay a portion cash or they may choose to pay a portion equity.  

Our best structures are that once the property investment is set up, you’ve got 105% lending against that property which allows you to move forward with that purchase. Now, in terms of all of the payments and the money flow, this is where it’s really important to follow our rules. And our rules are based on our MoneySMARTS money system where we have (and even though you’re rentvesting which means you don’t have an offset against your principal home), you must have an offset against one of your investment properties. And so we would always say, depending on which lender you’ve chosen for price and also feature, that we want at least one of your lenders to have an offset. Now if both of your lenders have offset opportunities, then we would put the offset against the lender that has the highest interest rate.  

Bryce Holdaway
So it’s a mathematical discussion, isn’t it? 

Ben Kingsley
It is. It’s all about the numbers, right? So in theory, you put your offset – your primary account against the highest interest account, and you fill that bucket. Okay? You do not pay the loan down; you fill the offset bucket next to that loan. And all rent goes into that account. It’s really important that you understand that. So all monies flow into that account, and then all repayments are made out of that account. We would also say to you as well, because that offset is a standalone account and not a loan account, by doing so, you would also be putting all your income into that account. Now you might be saying, well, I’m not saving interest in doing so because ultimately it’s not my principal place of residence, so you’re reducing my interest costs, which means I may not get as much back.  

Now we don’t know whether you’re negatively or positively geared so we would always still say, organize your money that way. In terms of making your expenses, you’ll have a choice there. If you’ve got some money in available redraw or still some buffer lending, then we would say for expenses, use that money as opposed to using the money that you have in your offset account. Because ultimately, over the course of time, you’re going to do one of two things. You’re going to fill up all of your offset buckets which means that technically you’ll have no debt if you were to give that money back to the bank.  

Or if in 20 years’ time, 10 years’ time… you do choose to change your strategy, which we always say if you’re gonna be rentvesting, it’s probably for the longer term. But if you do choose to sell those properties, take that bucket of money and you put that, because it’s obviously after tax, all of your income going in there, take that money to put against your principal home, which reduces your non-deductible debt and it also ensures that your deductible debt against your investment properties are giving you the best advantages for you and your family.  

Bryce Holdaway
Yep.  

Ben Kingsley
So, I mean I could draw that but that’s how I would say it in words.  

Bryce Holdaway
I think the buckets is the best visualization for a podcast, Ben. It’s like, just line up your buckets against the debts. And if you visualize that the bucket that’s the most expensive, Ben, just have that as the biggest one. That’s the one you fill up. And when it’s filled, where does it overflow? Onto the next one, which is the next biggest one. I haven’t seen a better analogy than that. You’re just filling up buckets. I’ve got a private loan where offset’s full at the moment, Ben. So I just found, then I’ll just put an offset against the most expensive investment debt that I have so that I can reduce some of the interest that I’m paying, which is important.  

Hey, another extension of that, Aaron, and we have talked about this previously, but it’s worth mentioning is that some people have big cash when they’re buying their principal place of residence, and therefore, because of this huge cash component, they then go to the bank and say, well, I’ll only borrow a smaller amount, whereas our recommendation is you go and borrow the maximum amount that you possibly can and then put your money into the offset account. So say the net was, you had $300,000 in cash, Ben, and you were gonna buy a million dollar home and so you’re only gonna borrow the difference. No, that’s not a good example. $300,000 cash and $500,000. So you’d only borrow the difference of $200,000. We’d actually say: no, go and borrow the full $400,000. And then actually put the whole $300,000… well you’ll tip off $100,000, you’ll just have $200,000 in offset.  

That allows you to control your cash, it allows you to control your liquidity; make sure you don’t sleep with one eye open at night. And if you’re disciplined with that money, it’s actually really, really good because if you at some point pay off the home and then realize that the house is actually a good investment, probably we’ve talked about this previously, you would just move that bucket of money and you’d go and lean it against the next optimal interest rate loan that you have.  

Ben Kingsley
Brilliant. 

Bryce Holdaway
So it’s very good, Aaron. Very good question. Thanks again for binge listening to 220 episodes in three months. 

 

TPC Gold | Can You Use Your IP’s Equity to Pay Off Your Home Loan Early?

This snippet is from one of our previous episodes: Q&A – How to Avoid Poor Loan Structure 

It’s a question we get all the time from property investors: “Can I use the equity in my investment property to pay off my home loan faster?” 

In today’s TPC Gold soundbite, Bryce and Ben unpack this exact scenario—and explain why it’s not as straightforward as it seems. 

Spoiler alert: It all comes down to how the ATO views the purpose of your loan. 

In this short but powerful episode, you’ll learn:
💸 What the ATO considers a private (non-deductible) purpose—and how that affects your tax deductions
⚠️ How redraws and lines of credit can accidentally “pollute” your loan structure
✅ Why having separate splits and clean offsets is crucial for clarity and compliance 

Want to Avoid Costly Mistakes in Your Property Finance Strategy?

If you’re thinking about refinancing, using equity, or paying off your mortgage sooner, make sure the structure is right from the beginning. 

Book a free initial appointment with an investment-savvy mortgage broker from our sister company, Empower Wealth.

Need Personalised Tax Advice?

Tax deductibility depends on your personal circumstances and how funds are used. For advice specific to your situation, book an appointment with a qualified tax accountant from our sister company, Empower Wealth.

Remember: No mortgage broker should be giving tax advice. Always speak to a registered tax professional to get it right. 

__________________

If You Enjoyed TPC Gold | Can You Use Your IP’s Equity to Pay Off Your Home Loan Early? You Might Also Like:


Transcript

Bryce Holdaway
We’ll go on to another sort of related question as we get all these segues. This is from Dean. “Hi guys, my question is can you use equity in your investment property to wipe out your principal place of residence mortgage? Cheers, Dean.” I’ll have a go at that. 

Ben Kingsley
Yeah. 

Bryce Holdaway
I’ll have a go at the answer, and you’re the mortgage broker, so you come and tidy up the edges…but the answer is you can do it. This is a common question. So people say: If I secure against an investment property and then pay off a non-tax deductible debt like a principal place of residence, can I do it? The answer is you can do it, Ben. But the tax department looks under and they go: What was the purpose of the loan? And if you secure against your investment properties to use a loan to pay off a private non-tax deductible debt, the tax office just goes “I see what’s going on under here. The purpose of the loan wasn’t for investment. It was actually for a private purpose, therefore we will not allow the interest to be deductible.” So to answer the question, you can do it, but it’s not gonna give you any benefit.  

Ben Kingsley
No, effectively you’re going to have the same debt and it’s still going to be in the same position where it is effectively non-deductible debt. The other classic one that people do here, Bryce, is they release equity from their investment properties or their family home or whatever it may be, and then turn that into an investment property and then say: oh, no, no, no, that property’s an investment property now and I release the equity out of that to put a deposit down for my new upsized family home. Surely I can claim that because it’s against that investment property. No, purpose of funds test – in terms of what it does, that money is still non-deductible. So be very careful. People just think that they can pay loans down and then release the money against all that, and that’s going to be deductible? Not true.  

Bryce Holdaway
Love it. Ben, beware of pollution. So this is often something that people don’t think about. So for example, let’s say you do everything by the book. You set up a loan, it’s for investment purposes only. You’ve got a redraw facility Ben, and what happens is you think: well, with that redraw facility, I’m going to put all of my income into the redraw facility, and for five days, I’m going to have all the interest benefits of that. And then on a Thursday, I’m going to pull my cash out and pay for the groceries.  

Problem: The pulling out of the money just changed the purpose of the loan. You have just fully polluted that loan. So it was initially set up with an intent for investment, and the fact that you parked some money there and pulled it out for groceries at the end of the week; you have just polluted the loan. You’ve just made that loan very complicated, which is why an offset facility is cleaner and avoids the pollution over a redraw facility.  

Ben Kingsley
And while we’re at it, Bryce, and we’ve talked about this before, the other great pollution killer, or basically the interest deductible killer, is lines of credit. I get $100,000 line of credit, I use $80,000 for investment purposes, and $20,000 to buy a car. 

Bryce Holdaway
Ooh I like this one. 

Ben Kingsley
I then start paying off that car thinking that I’m paying off that portion that I took out for the car. Tax office doesn’t see it that way at all. The first $20,000 that you put in there is actually paying off the $80,000 investment debt. So this is another example of where an investment-savvy mortgage broker will separate out potentially a small amount for personal use and separate that in a different loan split for investment use. You can have multiple splits. It obviously requires a little bit more understanding and management, but ultimately it’s as simple as using your MoneySMARTS. Everything goes into that primary cap.  

Doesn’t matter if you’ve got a hundred loans under that; if one of those loans is for personal use, you’ve obviously got to pay that off. But it’ll be drawing that money from the primary account, exactly like all of the rental income you’ve got coming from all your properties will be going into that primary account. So there’s one central transactional account in which all of that money is going to be serviced from.  

Bryce Holdaway
Don’t pollute, Ben.  

Ben Kingsley
Don’t pollute, Bryce. At the end of the day, no mortgage broker should be giving tax advice. And here, we’re not giving advice, we’re just sort of saying these are the pitfalls. These are the challenges around that, so no one should be sitting here saying I heard this and I’m going to action this without actually seeking independent advice from a tax accountant. 

Bryce Holdaway
Foundational underneath that discussion Ben was cross security versus standalone, so the good thing is we were talking then about standalone options.  

Ben Kingsley
Yes. 

Bryce Holdaway
But making sure you don’t get the wrong standalone option, particularly for pollution. So great question Dean, thank you for that. Let me quickly get another one for us Ben. 

 

TPC Gold | What Exactly Is a Cash Flow Property?

Today’s bonus snippet is from a previous episode where Bryce and Ben answer listeners’ property investment questions. 

Question #1: When Should We Buy Our Next Property? 🤔
Brad and his wife recently bought their first home. They currently live there but plan to turn it into an investment property. When should they buy their next property? And how should they set up their loans – interest-only or principal and interest? 

Question #2: What Makes a Cash Flow Property? 💰
Stephen wants to know more about cash flow properties. What is it? How do you identify one? And what does it truly mean to have a cash flow positive property? 

For a deeper dive into these topics, listen to the full episode here: Episode 260 | Q&A: Picking the Right Investment Strategy. 

Got a question for Bryce and Ben? Leave us a message here! Your question could be featured in our next Q&A episode.  

Cash Flow Property Tracking & Analysis

If you’re looking for a tool that will help you manage your property investments and finances, check out the Moorr app.  

Built for property investors by property investors, Moorr has just launched their Cash Flow Projection feature. This feature helps investors answer questions like: 

  • How much is my property costing me? 
  • How much profit is it bringing in? 
  • How much tax am I paying and/or saving on each property?  

Cash Flow Property-Related Episodes

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