Can I deduct $60K home loan interest if used to buy ETFs (NDQ)?

[Gervandrew]

Fellas, I want to invest using a loan secured against my home. I would borrow $1 million at 6% interest. This costs $60,000 per year in interest. I plan to buy an ETF like NDQ. It pays about a 1% dividend and grows mostly through capital gains. II will not sell anything for 10 years.

Can I claim the full $60,000 annual interest payment on my tax return?

Thanks.

 

[timmabambino85]

Yes.

Make sure you use an Offset Account to take money from. Do not use a redraw, because that will reduce the amount of interest you can claim.

 

[EpicGecko47]

Yes

Good way to cycle owner occupied debt

 

[Esw]

Yes.

Borrow against your house. Invest the money. Interest is deductible.

Some lenders won’t help. They limit cash for this.

 

[Polarsmasher20]

Yes but the income is also taxable

 

[Lostinthedigital]

I've been thinking a lot about borrowing against my home,lately, especially to invest when everything feels like it’s peaking. Honestly, it scares me knowing that markets can turn, that my investments might suddenly be worth less than the debt I’ve taken on. It’s one of those thoughts that keeps me up: what if a recession hit, and I lost my job, and I had no choice but to sell at a loss? It feels so fragile, and I just have to be real with myself about the risks.

 

[Elekt_rocker_42]

Debt recycling.
Yes. If you earn $1, you claim interest as tax deductible.
Same idea. I’m looking at NDQ. Its fee is high.

 

[SyntheticSlayer12]

The individual is unsure. That’s how it works? The $3 m property. Large borrowing capacity...

 

[NeerCanMellowPew]

I'd rather buy Bitcoin.

You seem smart enough to not completely dismiss this it's the only truly finite asset in the world.

 

[Sakurairo88]

Yeah mate I’m currently doing exactly that

 

[StormRippedSuit]

Cash out refinance, split loan for better accountancy