Friends With Money #247: How debt recycling can make you money
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In this Friends With Money episode from Money magazine, host Ryan Johnson chats with mortgage broker Joseph Daoud from It's Simple Finance to unpack debt recycling in plain English.
They explain how splitting your home loan or using a line of credit lets you access equity to invest in property, shares or a business, with potential tax benefits from deductible interest and investment expenses.
They work through a $1 million home example, outline who this suits (often higher-income earners and many self-employed borrowers), and step through setup essentials: pick the right lender and structure (often interest-only), team up with a good broker and accountant, and keep the investment purpose clear.
They also flag the big risks - bad advice, risky assets, rising rates, thin buffers - and why retirees or lower-income earners can be overexposed without a solid exit plan.
Episode timestamps
00:00 What debt recycling is
01:09 How the structure works
02:38 Who it suits
04:33 Goals and tax benefits
05:35 A real case study
08:02 Setting up the loan split
11:23 Choosing investments
12:13 Risks and rate rises
16:38 Which pros to call
17:34 Who should avoid it
20:43 Three rules and wrap
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Friends With Money podcast FAQ
What is the Friends With Money podcast?
Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.
Where can I listen to the podcast?
You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).
Who hosts Friends With Money?
Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.
Is the podcast suitable for beginners?
Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.
What topics does the podcast cover?
The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.
How often are new episodes released?
New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.
Can I watch episodes with captions?
Yes, full episodes with closed captions are available on YouTube.
Why subscribe to the Friends With Money podcast?
Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.
Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.
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