Hypothetical Financial Question

[AnyDream]

Rainy, check if your mortgage has a redraw facility OR a 100% offset account that you can bank it into (and if so how much it costs to redraw). The interest saved on 100K over 2 years would be a huge savings AND unlike other investments you don't have to pay tax on the benefit to you. Just make sure that the mortgage account stays open if you reach a zero balance during that 2 years. You wouldn't want the account to close and gobble up the 100 K!

[Ginger]

thanks everyone
mortgage offset sounds like the way too go...woo hoo!!!

[Ozstar]

Rainy if I were you I would book a holiday to the Gold Coast with that money

[MamaPan]

oobi shares???
just kidding - the mortgage offsetting sounds good - you will save a lot in interest just in that time if you have the right sort of mortgage (we put all of our salaries into ours and redraw and we save lots of int just by having as much as poss in there each day).
term deposits can also give you a risk free and easy return but it wouldnt be that big on that amount of money and that timing - but a safe bet if your mortgage isnt suitable.

[buliej]

For what it's worth, I think the Mortgage Offset account is the best way to go...and keep paying your regular monthly payments - you'd be surprised at what a difference it makes.

[misty]

well i am borring, I would definitely put it on my mortgage - the money saved in interest could go towards paying the mortgage down even further and then I could use the leverage created against my PPOR to invest towards more property.

[Ginger]

what's PPOR Misty?

[Phteven]

ppor = primary place of residence