Primary place of residence
Do not pay any interest on a home loan on your primary place of residence. i.e. either pay off the entire mortgage, or fully offset the principal in a 100% offset loan. The benefit of using the offset account rather than having no mortgage is that it provides you with flexibility and quick access to funds if you need to take advantage of an investment opportunity. Never have an interest only loan on your primary place of residence.
There is no capital gains tax on your primary place of residence. Therefore, sell when the market is high and move into an existing investment property temporarily. Then buy the next primary place of residence when the market cycle is low.
Investments
Use a margin loan to buy share indexes. Interest on the margin loan is tax deductible.
Use investment property loans to buy investment properties. Target 2 bedroom CBD apartments less than $600K. Select 100% offset interest only loans. Interest is tax deductible. Costs to inspect your property are tax deductible (flights to Australia, transportation, etc).
