Forums / Getting Technical / Finance / Possible options for a 250K surplus.

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  • Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    Possible options for a 250K surplus.

    Looking at buying 1 property for 50K cash (possible 2nd Holiday Home or IP not sure yet).

    Leaves 200K.

    What to do with the rest?

    Possible options/choices.

    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.


    C2

     

    Rich in happiness and money is better than rich in money with no happiness.

     

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post 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.

    Profile photo of Kipper57Kipper57
    Member
    @kipper57
    Join Date: 2006
    Post Count: 252

    The offset account to the fixed account may not be functional or only partial depending on the product and lender

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    Hi All

    Simon,
    The existing loans are for IPs.

    Wayne,
    The offset account is 100%.  This was negotiated when the loan was set up.

    C2

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Check out some managed funds. Some have returned 60%+ pa over the past 12 months.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    Hi Terry,

    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.

    Thanks,

    C2

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