Good Debt VS Bad Debt - The Importance of LEVERAGE in Growing Your Property Portfolio in Australia!

Many people are stuck in a bad debt cycle. If income is less than your expenses and you are forced to borrow for essential needs such as groceries, the situation is dire. Good debts are those used to buy assets that grow in value (appreciate) over time. The intention of taking on these debts is to increase the net wealth and passive income of the borrower, despite interest paid.  In this week’s episode, I’ll explain the importance of LEVERAGE, or debt in growing your property portfolio and why you shouldn't be scared!   Discussion Points: 0:00 Introduction 3:04 The problem that we make is saying that debt regardless of its form is bad 4:47 Good debt is deductible and increases return on investment 6:56 Good debt compounds wealth 9:54 In an inflationary environment – good debt increases the value of your assets 11:41 Debt is only good if you can manage its cashflows 13:32 Use the assets themselves to pay off the debt – as a strategy 17:38 A warning – don’t ignore the good debt 18:26 Conclusion     About The Host: Subscribe to Aus Property Mastery with PK for no BS, “straight to the point” property investing strategies and data-driven insights about the Australian housing market - the only property podcast not biased by a “Buyers Agent”. You can listen to Aus Property Mastery on Apple Podcasts, Spotify & YouTube Music.  PK Gupta is the founder of the Property Investment Accelerator — Australia's #1 Rated And ONLY 100% Independent Real Estate Course & Mentorship Program that helps people achieve passive income through property investing using DATA, WITHOUT wasting months doing "research", spending weekends at inspections OR dropping $10-20k on Buyers Agents each time.    Resources:          Watch FREE Trainings On Our Website  👉 https://consultingbypk.com.au/         Get Suburb Tips & FREE STRATEGIES In Our Private Facebook Community With Over 50,000 Clients & Investors  👉  https://www.facebook.com/groups/passiveincomethroughproperty Watch No Nonsense Property Market Insights On Our YouTube Channel  👉https://www.youtube.com/c/AustralianPropertyMasterywithPKGupta     Disclaimer: No Legal, Financial & Taxation Advice The Listener, Reader or Viewer acknowledges and agrees that: Any information provided by us is provided as general information and for general information purposes only; We have not taken the Listener, Reader or Viewers personal and financial circumstances into account when providing information; We must not and have not provided legal, financial or taxation advice to the Listener, Reader or Viewer; The information provided must be verified by the Listener, Reader or Viewer prior to the Listener, Reader or Viewer acting or relying on the information by an independent professional advisor including a legal, financial, taxation advisor and the Listener, Reader or Viewers accountant; The information may not be suitable or applicable to the Listener, Reader or Viewer's individual circumstances; We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and we are not authorised to provide financial services to the Listener, Reader or Viewer, and we have not provided financial services to the Listener, Reader or Viewer.  See omnystudio.com/listener for privacy information.

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