Hi Team
I have fallen into a large amount of dosh(money) I have 3 i/p in NZ only had them for 2 years owe $150k should i pay them out, what are the advantages/disadvantages
aprecaite all your advice
What are your goals?
What do you thin the market holds for the future?
I feel you need to decide whether you wish to sit tight for a while or continue to buy. Some more thought as to what you wish to achieve should reveal the correct answer.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Remember any loan interest on your IP’s, is tax deductible and this must be taken into account when determining the best investment for your $150k.
The disadvantage of paying these loans off is that if you required money at a later date for personal reasons, any re-financing would not be deductible.
I would suggest you first look at any non deductible loans first (eg mortgage on PPOR, car finance etc).
Otherwise you should look at further investing. If you can achieve yields of better than the interest rate on your IP’s then you will be better off.
The sort of money you are talking about would even allow you to step up to commercial property where you can still achieve 10% net yields.
Just remember to keep some of your funds aside for a rainy day eg cash and term deposits or shares etc. If you are unsure, see a certified financial planner to see what’s available.
Cheers
Jeffthankyou this is terrific advice appreciate the time and thought you have put into writing it
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