Is owning your own home a good thing?? we’ve got money to invest, as well as a deposit for a home loan. I was going to to both, ie get a home loan (that will keep the wife happy, as she is getting sick of renting), and use the other $15K for investments (be it stocks, real estate, etc). is this a sensible thing (assuming the investments return more than the loan’s interest rate?) or should i focus on the IP/stocks solely, or the home loan and invest once that’s paid off?? any thoughts for a young couple??
Take my advice with a grain of salt as I really don’t know you well enough.
One idea is to buy the home using all of your money.
Pay down the home as fast as you can and in the meantime find your other investment.
Draw money from the home loan to invest. Use a split loian to clearly see the new debt as a seperate entity.
This means that your equity is where it should be against your home and your investments carry as much debt as possible. Assuming these investments pay a return then the interest will be a tax deduction.
I recommend you seek independent advice.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
Pay down the home as fast as you can and in the meantime find your other investment.Draw money from the home loan to invest. Use a split loian to clearly see the new debt as a seperate entity.
This means that your equity is where it should be against your home and your investments carry as much debt as possible. Assuming these investments pay a return then the interest will be a tax deduction.
thanks for the advice Simon,
yeah, appreciate it’s hard giving advice out to a computer screen[^]. I’m actually meeting with my accountant next week to see how i can minimise my tax via the loan. i’ll bring it up and see what comes out of it.
although with the house prices the way they are at the moment, i reckon i’ll be needing all the cash for the deposit thanks to the wife’s $$$$ taste[
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thanks.
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