My wife and I got as pretty big shock today - grandfather gave us $250,000 as part of an inheritance...so we've got options at the moment...
We're 29 & 30 respectively, in full time jobs. We only have a PPOR in the Inner West Sydney worth $400,000, which has a $300,000 mortgage on it presently.
My immediate thoughts:
- Put $180,000 in the mortgage (leaving us an LVR of 30%)
- $60,000 into medium term Imputation Fund in Colonial First State (would expect to get high single digit, low double digit over 5-7 years)
- Keep $10,000 for discretionaries in the short term.
We want to have a child in the next 24 months so my wife can have some time off, I earn roughly $100,000 per year.
My wife is probably more risk averse than I am, but we want to stay in our PPOR for another 3 years, so with all the equity we're about to have in our mortgage, we can go into lots of different directions.
All thoughts about my immediate plans are very welcome!
I would love in 5 years to get to a house, and have 2 IPs working very nicely, with the CFS Fund like a "Baby Fund" for example and speedhumps along the way. More interested in wealth and growth rather than income at this stage...