Finance Battles

 Lets throw two options into the ring and see who comes out on top.

  1. House Deposit: IP Offset vs HISA
  2. House Deposit: HISA vs FHSSS
  3. Investing: IO with PPOR Offset vs P&I

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GHHF vs Self-Leverage

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GHHF has now been available for over a year, providing us with an opportunity to compare its real-world performance against a hypothetical self-leveraged portfolio. While both aim to boost returns through debt, there are critical differences in rebalancing, currency exposure, fees, and tax implications that can sway the outcome. The motivation is GHHF has access to cheaper debt than most can get via there mortgage, so is it worth moving over to it? Or do the other costs decay its lead? The idea is to compare GHHF to self-leverage, that is buying the same assets with the same amount of debt where the debt is obtained via debt recycling or an equity release. Disclaimer: I'm no expert at doing these comparisons, so take everything with a grain of salt. TLDR GHHF and self-leverage have delivered remarkably comparable returns over the past year of 17.6% pa vs 17.7% pa. Differences While I attempted to keep the differences to a minimum, there are a few differences between the two options...
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Finance Battle #2: House Deposit: HISA vs FHSSS

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In this lineup let's see the difference in FHSSS and HISA. FHSSS $10K put into FHSS ends up as $8,500. Lets assume 4% deeming rate, so you can withdraw =$8,500 x 104% = $8,840. Now you withdraw with MTR 32%: = 8,840 x (100% - 32% + 30%) = $8,663.2 MTR 39%: = 8,840 x (100% - 39% + 30%) = $8,044.4 MTR 47%: = 8,840 x (100% - 47% + 30%) = $7,337.2 HISA $10K income into HISA. Lets assume 5.5% return. MTR 32%: = 10,000 x (100 - 32%) x (100% + 5.5% x (100% - 32%)) = $7,054 MTR 39%: = 10,000 x (100 - 39%) x (100% + 5.5% x (100% - 39%)) = $6,304 MTR 47%: = 10,000 x (100 - 47%) x (100% + 5.5% x (100% - 47%)) = $5,454 FHSS Relative Improvement Relative to HISA So how much better if FHSS after just 1 year? MTR 32%: = (8,663.2 - 7054) / 7054 = 22.8% MTR 39%: = (8,044.4 - 6304) / 6304 = 27.6% MTR 47%: = (7,337.2 - 5454) / 5454 = 34.5% ANZ FHSS Calculator This calculator compares over 4-7 years which is an improvement over my above calculation. I believe it also includes the impact of the withdr...
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