I have $230K—pay off $640K mortgage & $40K loan or invest? Best move?

D

DelDawgArtemis

New Member
I have a 640k mortgage.
I also have a 40k personal loan.
I just received 230k.
What is the best way to use the money?
I want to maximise it.
I do not want to waste it.
Should I pay off the personal loan?
Should I put money on the house?
Should I use an offset account?
Should I invest instead?
 
I'm a broker. If the personal loan isn't tax deductible and there are few or no penalties, I would pay it off.
Then, clear the balance on your home loan especially if you have an offset account or might rent out this home later.
After that, explore your choices, like property investment, shares, or super.
I'm happy to help if you need assistance or have more quesitons. I can't help with shares, but I can suggest a planner or accountant if you need one.
 
I'd probably pay off the personal loan first, then just pop the rest in your offset while you figure out what's next. Honestly, from a numbers point of view, investing could get you further ahead than just putting extra into the mortgage, but it really comes down to how much risk you're comfortable with.

If you do decide to go for investing, make sure you team up with a broker and an accountant. They can help you set things up so you pay down your mortgage with the cash, then borrow it back to invest that way, the interest on the investment loan can be tax deductible for you.
 
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