Buying shares from equity in the property (Hong Kong)

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Topic Author
ThinkandInvest
Posts: 5
Joined: Mon Nov 23, 2020 10:16 pm

Buying shares from equity in the property (Hong Kong)

Post by ThinkandInvest »

My parents have a property in HK and the interest rates in HK are from 1.3% and the highest will be 3% from history.

Equity is 200K AUD which they can take out.

Since they are not Australian Permanent Resident, they wouldn't need to pay tax on CGT.

I was thinking that they could essentially buy shares and still be ahead by taking out equity and investing in the index because in ten years the rate of return would be more than the interest rate in the mortgage.

I guess people do it here for debt recycling but we won't get the benefits of the tax offset like Permanent Aussie Residents.

Any thoughts?
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