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Description

In this episode of Finance as Property That, we tackle one of the most frequently asked questions from listeners: What are the common mistakes people make when structuring their investment property loans? Host Dion shares expert insights into three major pitfalls investors face when setting up their debt structure and how to avoid them.

From the confusion between offset and redraw facilities to selecting the right loan products and planning for long-term financial goals, Dion breaks down each mistake with real-world examples. If you're looking to build your property portfolio the right way, this episode is packed with valuable strategies to optimize your loan structure, minimize interest payments, and maximize tax benefits.

Episode Breakdown:

🔹 [00:00] - Introduction
Dion introduces today’s listener question and explains why loan structure mistakes are a common yet critical issue for property investors.

🔹 [01:30] - Mistake #1: Misusing Offset & Redraw Facilities

• Understanding the key differences between offset and redraw accounts.
• How using them incorrectly can create tax complications.
• A real-life case study of a client who saved $4,000 per month by restructuring their loans.

🔹 [07:00] - Mistake #2: Incorrect Loan Structures & Overpaying Interest

• Why working with a mortgage broker gives you more flexibility than going directly to a bank.
• How strategic loan selection can maximize borrowing capacity and lower interest costs.
• The benefits of separating owner-occupied and investment loans for easier tax tracking.

🔹 [10:00] - Mistake #3: Failing to Plan for Future Investments

• The importance of thinking two to three steps ahead when structuring your loans.
• Why proper planning can help you transition from an owner-occupied property to an investment with ease.
• How different structures (such as trusts) can impact tax benefits and asset protection.

🔹 [12:30] - Key Takeaways & Final Advice

• The importance of seeking expert advice from a mortgage strategist.
• Why structuring your loans correctly from the beginning is crucial for long-term success.

🔹 [13:30] - How to Get in Touch

• Connect with Dion on Instagram: @DionFinanceSpecialist
• Follow the podcast on Instagram: @FinanceThisPropertyThatPodcast
• Full episodes available on YouTube, Apple Podcasts, and Spotify.
• Submit your questions for future episodes!

📢 Final Thought: If you’re serious about building your investment portfolio, getting your debt structure right from the start is key. Don’t make costly mistakes—plan ahead and work with professionals who understand your financial goals!