How would you use this inheritance?

Discussion in 'Investment Strategy' started by Naisy, 6th Dec, 2011.

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  1. Naisy

    Naisy Member

    Joined:
    1st Jul, 2015
    Posts:
    9
    Location:
    QLD
    Hi all.
    This forum has already been a wealth of information for me and now I would love your opinions on my situation please. I will be seeking professional advice in the near future, but would like to go in armed with as much of my own knowledge and ideas as possible.

    I will be receiving an inheritance in the near future of around $230k and currently have growing savings of $20k. This amount of money could really set up my future so I want to make it work for me the best I can. I am a 24 year old first home buyer, single, still living with parents, and would like to purchase a PPOR. My annual income is a smidge over $50k meaning I can service a loan of around $165K.

    With my limited knowledge, I think that I have two viable options.

    1. Purchase PPOR for under $400k. IO loan with 100% offset with view to make this an IP in future.
    2. Purchase same PPOR, but with view to keep this as PPOR for a number of years and purchase a new IP in future.

    As my loan will be relatively small due to putting the inheritance towards it to begin with, should I be aiming for #2 in a few years as this would be a larger loan for tax benefits? If so, should I still structure the PPOR loan in the same way?

    Please feel free to point out an option number 3, 4 or 5 for me too :)

    Thanks in advance.
     
    Naisy, 6th Dec, 2011
    #1
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    566
    Location:
    SE Queensland
    Hi Naisy,

    I think you have to ask yourself what you really want. Do you want a nice home to live in?( away from the parents.) Do you want to use your inheritance to make money? Perhaps start a business?

    A home to live in would be different to some student flats next to the local uni. Property is trending down at the moment. Don't feel in any rush to buy.

    If you spent the next two years researching and studying finance, you could really make something from your inheritance.

    With careful planning, you could fund some great overseas holidays. I'm glad I travelled around the world when I was young.

    Your capital could be used to start a small business.

    But whatever you do, DON'T buy cars and consumer items. You Will blow your money in 2 years!


    Best of luck,
    Johny. :)
     
    Johny_come_lately, 6th Dec, 2011
    #2
  3. Chris C

    Chris C Well-Known Member

    Joined:
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    Posts:
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    Location:
    Brisbane, QLD
    Also can you define "near future"?
     
    Chris C, 6th Dec, 2011
    #3