1 session inside Boa
Theo Chambers
Founder and CEO, Shore Financial
Theo Chambers founded Shore Financial in 2013 with three staff. The firm now has over 110 people, writes around $200 million per month in home loan applications and has been ranked Australia's number one independent mortgage brokerage every year since 2016. He started in finance at Commonwealth Bank at 19 and has been broking for about 16 years.
The session
What Theo teaches
Recycle your home loan debt to halve your interest cost
Theo's method: park savings in the loan account redraw (not the offset), then draw that money out for investment purposes. On a $1.3 million home loan, pulling $300,000 out of redraw to buy property, shares or another investment makes $300,000 of that loan tax deductible. On the top tax bracket, 6% interest effectively costs you 3%. He calls making the entire home loan deductible over time one of life's biggest hacks, and notes it is general advice you must validate with an accountant or financial planner.
From Theo Chambers on property, super and debt recycling →Contribute to super yourself, because nobody else will
Business owners skip super because it is voluntary for them, then hit 50 with nothing in it. The concessional cap is $30,000 a year. In the top tax bracket you get roughly half back as a rebate, so $30,000 in costs you about $15,000. Earnings inside super are taxed at 15% and 10% on capital gains, and in retirement phase both income and gains are tax free.
From Theo Chambers on property, super and debt recycling →Show a profit or the bank will not lend to you
Theo's step one before buying anything is making sure the business actually shows profit, because that is what drives serviceability. Growing revenue on digital marketing spend, followers or engagement means nothing to a lender. Banks will not lend against revenue growth. If you suppress profit to avoid tax, you also suppress your borrowing capacity.
From Theo Chambers on property, super and debt recycling →Run the $150k to $5m property compounding maths
Shore's case study: start with $150,000, buy a $750,000 investment property. Using historical growth rates of around 7% capital growth, after four years the accumulated equity funds another 20% deposit. Then repeat every two years using combined portfolio equity. After ten years that is about six properties and a $5 million portfolio. If the cash flow is not enough to retire on, sell one or two to pay down debt and lift the yield on the rest.
From Theo Chambers on property, super and debt recycling →
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Session notes are free. The recordings, the live advisories and the founders in the room are for members.