I think most people here misunderstand debt recycling and paying off your home loan first

  1. If your home loan is at 6% and you pay extra into it, you are effectively getting a tax free return of 6% with zero risk and zero additional work on your part.
  2. If you put that extra repayment into A200, it would need to return a minimum of 8.9% pre tax (made up of circa 4% dividends) and circa 4.9% capital growth.
  3. If you borrow from your mortgage (debt recycling) your return needs to be substantially higher to account for the additional borrowing costs (despite your 45% tax rate, its still not free)
  4. Wouldn't the majority of people simply be better off paying their mortgage down to zero and then investing with cash or take on debt if they choose?
  5. Why run the two strategies? i.e paying off home loan and investing