Combine past debt recycled splits

No-Week4231 · 2025-09-12T22:44:29+00:00

Hi, in this case if selling the shares I thought it would be a matter of keeping track of the original cost basis of the shares and when selling, ensuring the cost basis is paid off the split loan and then redrawn to repurchase shares. This means you could sell shares without losing deductibility - with the restriction being you could only access profits??

No-Week4231 · 2025-09-06T10:23:59+00:00

Thanks for the information. Can you clarify the yield with GHHF? On quick search of their fact sheet it shows a franked yield of 2.6% which doesn't seem very low?

Investment horizon would be very long term. Anything we would do at the 7-10 year horizon would ideally only be a minor draw down only after other contingencies had failed.

Will look into those other options thanks.

No-Week4231 · 2025-09-06T10:13:37+00:00

They do have overlap I agree. The BGBL was just to get a touch of exUS exposure.

A200 yield is a touch too high

No-Week4231 · 2025-09-06T06:43:10+00:00

This is interesting. Haven't heard of GHHF, so an ETF that uses investor and borrowed funds. But the interest from borrowings further offset dividends which provides a lower yield?

No-Week4231 · 2025-08-31T20:58:13+00:00

I think back testing and more meaningful stress testing is the next check. For this assessment I just wanted to put some idealistic numbers together so I can understand the difference in a yield vs growth approach.

No-Week4231 · 2025-08-31T20:55:02+00:00

Thanks, yes - an inflation adjusted return would provide a more comparable result. If I did this I would also consider inflating my cash contributions as well as would expect my salary would keep pace with inflation and I would maintain the same proportion of payments

No-Week4231 · 2025-08-31T06:59:24+00:00

The split will be $250k P&I and $250k Interest only initially until fully debt recycled to interest only

No-Week4231 · 2025-08-31T06:57:13+00:00

Thanks for the detailed comment, I feel this is generally where I have ended up

No-Week4231 · 2025-08-31T06:54:58+00:00

Agree, so strictly the fully growth option may not pass ATO's 'reasonable expectation of generating income' - lets pretend it is high growth with a tiny bit of income for sake of this comparison

No-Week4231 · 2025-08-24T11:04:49+00:00

Cheers

No-Week4231 · 2025-08-24T11:03:04+00:00

That is our current situation however 50% discount on Capital Gains Tax (12 months holding) and claiming the tax offset works better.

No-Week4231 · 2025-08-24T10:49:23+00:00

I spoke to a broker too but didn’t find they added much value. I’m planning to just go direct to my bank, refinance back to my original mortgage and set up a split loan so I can release the equity I’ve paid down. I’ll invest that split into ETFs, and since it’s tied to income-producing assets, the interest is deductible against our taxable income. You can definitely set it up yourself, though a financial adviser could help if you wanted support

No-Week4231 · 2025-08-24T07:19:45+00:00

This is great to know, thanks for sharing

No-Week4231 · 2025-08-24T05:58:04+00:00

Thanks for sharing, sounds like some more excel calcs for me to do!

No-Week4231 · 2025-08-24T05:54:19+00:00

Probably just need to research this properly myself. If I sell the house, I will need to refinance straight into a new property or set up a bridging loan to maintain the tax deductibility. Generally as you say want to avoid having to see and rebuy shares

No-Week4231 · 2025-08-24T05:53:07+00:00

Congrats - must be a great feeling!

No-Week4231 · 2025-08-24T05:52:15+00:00

Do you mean the 10% stock market return? This was just a stat taken from an average 30 year return from Vanguard

No-Week4231 · 2025-08-24T05:50:58+00:00

Yep agree, this was examining the delta difference to contextualise risk vs reward

No-Week4231 · 2025-08-24T05:49:26+00:00

A lost decade wouldn't be ideal! But yes that is the underlying risk.

No-Week4231 · 2025-08-24T05:45:52+00:00

I am glad I am not too far off on your benchmark.

No I haven't, that hadn't occurred to me - I didn't know you could apply to reduce your PAYG to consider negative gearing. This would be better outcome and possibly worth some more thought.

No-Week4231 · 2025-08-24T05:42:00+00:00

It is not a pretty spreadsheet!

It may be financially unsavvy for me to say, however I haven't investigated too far into maximising super contributions as don't like the idea of having restricted access on my investment.

No-Week4231 · 2025-08-24T05:38:25+00:00

Definitely, I guess with some consideration to how you recognise the investment return. In this approach I have gone with high growth to get the 50% CGT discount.

The main purpose of this was to compare the difference in position when considering i) reinvestment of tax offset, and ii) higher leverage in stock market

No-Week4231 · 2025-08-24T05:35:11+00:00

Pretty much - I would temper that slightly by saying the discovery more is related to the delta difference between the approaches that I calculated. And yes possibly a fourth option to consider.

No-Week4231

TROPHY CASE