Leftover cash after buying a house

YOTR on 22/02/2014 - 14:23

Maybe I am asking a simple question, regardless I need your help.

I have now let the dust settle after buying our first home and after purchasing everything to fill it up, all the associated conveyancing fees, stamp duty, etc, I have about $70K sitting in the offset account.

Now is that the best way of using this sort of money on a $400K mortgage? Should I just chuck it straight into the homeloan? The bank offers us free redraws, so if anything unexpected emerged I can grab cash that way I guess.

Or is there something else I haven't considered?

Home & Garden

Comments

  • CyberMurning on 22/02/2014 - 14:44
    +1

    redraws and offset works very similar from the owner point of view, but different in the eyes of ATO.
    to make it simple, if you have offset then better put the money into offset instead to the loan itself (redraws)

  • blueskyfridays on 22/02/2014 - 15:32
    +2

    Agree with erwinsie - if you ever move out and have to rent your property out - you can claim the entire interest expense on your tax - hence why you need to maintain an offset account (but be financially disciplined and not spent it all!).

  • davidem on 22/02/2014 - 16:07
    +5

    And don't tell your solicitor you have leftovers.
    He may 'find' extras not yet billed :-)

  • [Deactivated] on 23/02/2014 - 09:36
    +1

    My personal opinion is leave the funds in the offset.

    Only take it out if you have a safe investment option that pays you a better interest rate than the savings benefit of leaving the funds in the offset account.

  • mini2 on 23/02/2014 - 11:53

    Almost enough to buy another property around $300k and become a little landlord if you're that way inclined.

  • danyool on 26/02/2014 - 22:54

    Is this a joke thread?? Who has a lazy $70k left over they don't know what to do with after buying a house!

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