STRATEGY COMPARISON
Side by side, on your terms
Investment portfolio
$304k
Net wealth · 10% growth · single exit · yr 20
CAGR9.4%
on $50k over 20 yrs
Mortgage offset
$110k
Net wealth · 6% mortgage · risk-free · yr 20
CAGR4.0%
on $50k over 20 yrs
Investment property
$320k
Net wealth · 80% LVR · VIC · 6% growth · yr 20
CAGR9.7%
on $50k over 20 yrs
Debt recycling
$732k
Net wealth · Convert home debt → deductible · yr 20
CAGR14.7%
on $50k over 20 yrs
Highest net worth
Debt recycling
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Pros
- +Makes home-loan interest tax deductible over time
- +Pays down home loan faster with surplus cashflow
- +Builds an investment portfolio in parallel
Cons
- −Adds investment-loan leverage and risk
- −Requires good cashflow and lender setup
- −More complex — sequence of returns matters
NET AFTER-TAX WEALTH OVER TIME
Investment portfolio
Mortgage offset
Investment property
Debt recycling
Each strategy has its place. The right mix depends on your cashflow, risk appetite, and the one you'll actually stick with.