Should I use offset, savings, or S&P 500 to save for another investment property?

M

marillkitty

New Member
Hi, I own an investment property with a mortgage and I rent my own home. I want to buy another investment property in two years.

Should I put my savings into my offset account to lower my loan interest, put it into a separate high-interest savings account, or keep investing in the S&P and sell when I'm ready to buy?

Thanks for you r help!
 
Put all your extra money into your offset account. The interest you save will be much more than the interest you could earn elsewhere. Plus, you would have to pay tax on any interest you earn, as it counts as income.
 
Unless you earn more after tax with the S&P. More than you save on interest and deductions. Then offset. That’s the way.

Check with your accountant. For the numbers. Crunched from that side.
 
Back
Top