Indeed! I suspect it's under-utilised because it can seem a bit confusing, but with the right roadmap it's actually fairly easy to understand/implement.

@@VikramG9 Thanks Vikram :)

Without knowing your situation (tax, cost base, VAS value, mortgage value) it's hard to say definitely however when working with customers it's often a consideration. You likely will have some capital gains tax to pay; however, the annual savings of debt recycling often will make up for the initial cost. One step backwards, 2 steps forward. To see how much you'd save, download the debt recycling calculator on edvest.com.au Just remember to avoid reinvesting in the same investment as doing a strategy for the sole purpose of tax savings is a no no. Fortunately there's plenty of quality alternate ETF's.

You can and you've still borrowed to invest and can deduct the portion of interest. However, you've created a mixed loan and the calculation of the portion doesn't remain fixed (assuming P&I), so it's an ongoing headache for you (and possibly your accountant). I'd advise to structure separately initially. This will save yourself time, stress, and possibly errors in the future.

@@Nerdificationing Investing vs paying off mortgage (by keeping in offset) does increase risk as you're exposing yourself to the market vs the guaranteed return of your interest rate. Historically investors have been rewarded for taking this risk however there are periods where the justification of the decision is longer therefore is crucial is a long term strategy. Fortunately it doesn't have to be one or the other rather you can control the amount to invest and risk to take. For some it may be $0, for others the amount of offset, for others on high high risk spectrum may be offset plus equity release. If you were to invest anything, it would be worth debt recycling however and funding investment with debt/equity vs cash.

Thanks for the comment! Debt recycling works by converting non-deductible debt into tax deductible debt. Since the mortgage on an investment property is almost certainly already tax deductible, there's nothing to convert and doing so would make your deductible debt level exactly the same. So debt recycling only works on non-deductible debt, which is almost always against the main residence.

Thanks for watching! It would really depend on your situation, but here are two of my past videos that may be relevant for 18-25 year olds: 1) Low-cost diversified ETF portfolios - kzfaq.info/get/bejne/m6mVis6p3K3LnIE.htmlfeature=shared 2) Best high-interest savings accounts - kzfaq.info/get/bejne/d6-Xrdde0tO5iI0.htmlfeature=shared It's great that you're interested in investing while young. When you start early, the benefits of compound interest are on your side. Best of luck!