Possible options for a 250K surplus.
Looking at buying 1 property for 50K cash (possible 2nd Holiday Home or IP not sure yet).
What to do with the rest?
Loan 1, 700K approx @ 6.4% IO = $3700 per month- fixed for another 18 months- also has an offset account attached to it.
Loan 2, 100K approx @ 7.4% variable = $700 per month.
Current debt to equity ratio involving these loans and properties is about 50%.
If you want any more info just ask.
Rich in happiness and money is better than rich in money with no happiness.Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
Best thing to do in the short term is to deposit the funds in an offset account linked to your home.
You didn't indicate whether the existing loans were for home or IPs.Kipper57Member@kipper57Join Date: 2006Post Count: 252
The offset account to the fixed account may not be functional or only partial depending on the product and lender
The existing loans are for IPs.
The offset account is 100%. This was negotiated when the loan was set up.
C2TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I've always been a property man and stayed away from shares and funds because I know absolutely nothing about them. Property investing gives me enough headaches as it is but times are a changing.
Can you PM me some more details and I will look into it.
What country you in now? A J T?
I might have some work to throw your way.