Investopoly

Part 1: Save tax through successful loan structuring

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Description

How you structure your loans can have a large impact on the tax you pay, your risk, your ability to build wealth, your cash flow and your general financial strength. Efficient loan structuring is a commonly overlooked and rarely understood topic but that’s not to say it’s overly complex. Like anything, you don’t know what you don’t know until you know it. Many people tend to carry a reasonable amount of (investment) debt throughout their working life so it’s especially important for you to ensure your mortgages are your servant, not your master. You can save a lot of tax by optimising your loan structure.
Part 1
Loan structure # 1: Always borrow the maximum and use an offset
Loan structure # 2: Always interest only
Loan structure # 3: Minimise security
Part 2
Loan structure # 4: Diversify lenders
Loan structure # 5: Avoid cross-securitisation
Loan structure # 6: Never mix business with pleasure
Loan structure # 7:  Stagger fixed rate expiry
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Important

This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.