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I assume Witzl is meaning debt recycling. This is when you channel all your income including from investmests etc into your ppor loan to reduce the balance leaving your interest on investment loans to capitalise. You effectively reduce the debt on ppor and increase the debt on investment loans.

Generally doesnt your borrowing capacity remain the same tho?

Perk of LOE :)

What if you dont pay tax in the first instance - isnt all debt the same then?

Ours is far from paid off too Mick - no point to paying it off because you are only reducing your cash flow. Those same principle dollars could be used for covering holding costs on more properties and increasing your asset base further. We've had IO loans in the form of LOC's on our ppor's...

Once an investor has sufficient equity in there home, why would one ever want to pay off their ppor when you can buy IP's beats me :confused: IMHO building your asset base as fast and as quickly as you can is where you create your wealth and net worth - not from trying to save on non tax...