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
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.
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!
Yes would agree that the offset account would be the best use of the cash. Hope you're back on your feet soon.
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.