another way to look at this is if you've already got a primary residence with an access bond and you've got an investment property with an access bond, you would want to move as much cash out of your investment property's access bond to take advantage of the tax benefit on the interest, as possible. so you could calibrate your investment properties bond such that for tax purposes you break even. this is assuming you're in the fortunate enough position to be cash flow positive on the property in the first place. BC01 i think you're missing the point though on the "risk free" asset. the point is that you have to consider what your return on the R1m would be because by utilising a bond you've now got R1m to invest. put it into a 8% government bond if needs be, but this has to be included in your analysis to be of any relevance.
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