IP offset vs Stockmarket

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This question gets asked a lot but wanted to clarify specifically for investment property loans.

Say I have a large amount of cash in offset accounts for IP. Is it wise to withdraw most of it and dump it in S&P500?

My understanding is it would allow me to make gains on the stockmarket, on which I’d be taxed 25% if I held it for more than a year (after CGT discount), while allowing me to negatively gear interest on the capital since it’s borrowed against IP.

Is that correct or am I missing anything?

Are there any scenarios which would make this a bad idea?

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Puddingandpop

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Posted: 6 months ago
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