Hi ,
Please may I ask the forum their opinion;
Situation is;
bought PPoR @ $475k outright.
Needs $100k reno.
I have $50k towards reno costs
(House will be conservatively 'worth' $650k after reno.-but it is a long term PPoR - not an IP)
I need to borrow $50k towards reno costs (LOC)
I am thinking of borrowing a further $100k (therefore $150k in total LOC) & investing in a managed fund that should return 8% + p.a (fees are 1% + $1400 set up costs for the LOC)
What is playing on my mind is that with only $100k at a possible 8% return , is it worth it?!? (with the set up costs & risk etc?)
Looking forward to hearing your thoughts !
Thanks,
Murrayo..
Please may I ask the forum their opinion;
Situation is;
bought PPoR @ $475k outright.
Needs $100k reno.
I have $50k towards reno costs
(House will be conservatively 'worth' $650k after reno.-but it is a long term PPoR - not an IP)
I need to borrow $50k towards reno costs (LOC)
I am thinking of borrowing a further $100k (therefore $150k in total LOC) & investing in a managed fund that should return 8% + p.a (fees are 1% + $1400 set up costs for the LOC)
What is playing on my mind is that with only $100k at a possible 8% return , is it worth it?!? (with the set up costs & risk etc?)
Looking forward to hearing your thoughts !
Thanks,
Murrayo..