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Discussion in 'Money Management' started by micko, 2nd Jul, 2014.

  1. micko

    micko New Member

    Joined:
    2nd Jul, 2014
    Posts:
    1
    Location:
    mackay,qld
    So I've just received a redundancy payment of 18k and I have a house in mackay that I still owe 280k on, I am wondering whethe I should put the money into my offset account or term deposit or use it as an investment house deposit some advice would be great
     
  2. Pete Ramoza

    Pete Ramoza Active Member

    Joined:
    29th Jul, 2012
    Posts:
    40
    Location:
    Brisbane, Qld
    It would really depend what your goals are. If you give us a bit of a rundown of your background and plans I'm sure someone would be able to offer some advice.
     
  3. investortom

    investortom Member

    Joined:
    21st Aug, 2014
    Posts:
    5
    Location:
    Sydney, NSW
    Hi Micko, put it in an offset account. Nothing beats the guarantee of reducing your interest bill.

    Best of luck with finding a new job!
     
  4. jodie123

    jodie123 Active Member

    Joined:
    15th Aug, 2012
    Posts:
    34
    Location:
    Brisbane, Qld
    Yes would agree that the offset account would be the best use of the cash. Hope you're back on your feet soon.
     
  5. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    If you paid the money into your loan you would be saving 5% x $18,000 pa in non deductible interest.

    if you then borrowed $18,000 for the deposit on an investment property you would be able to claim $18,000 x 5% in interest deductions each year.

    You could be saving around $400 a year doing this. Plus the compounding effects over 20+ years.