Inheritance Funds

I shall preface this post with the comment that I am the type of person who prefers to pay off my investments as soon as practicable (so that my adult children will not be left with the responsibility of debts/loans that I have incurred.)
In the near future I am anticipating that I will have about $100k from the sale of my Mother's home/estate, (this after allocation of a reasonable portion to those children and a future development project).
My instinct is to pay that money off a recent IP loan (reason mentioned above) on which $400k is owed. After reading lots of posts in recent days, I know that this will go against the grain of many SS's. However, I need to mention that I have no intention of liquidating the said IP for a very long time.
Would appreciate some feedback so that I can be armed with questions when I go and talk with my lender and accountant.
Frizzle, my thinking is along the same lines as you. There are many different opinions on any forum and each argument has its supporters and opposers.

We are at the stage of consolidating and paying down debt. Yes, I could go out tomorrow and borrow $1m or more and buy more properties but, frankly, I don't want to.

But instead of paying the $100K off an IP loan, why not put it in an offset account. You get the same benefits but with unrestricted access to the money should a personal need arise.
I think the same, i dont wan't to be a 50yo + and have 30 + properties that all carry a large loan. Ill rather be 50 and have 5 IP's fully paid off.
Everyone has their own goals and sleep at night factors, so there is no correct level of debt as it's such a personal thing.

It's a pretty difficult thing coming up with goals in life and property I have found from my own mistakes and wanderings! One idea might be just to copy wealthy people who have gone before you, read up on their stories and how they generated wealth in property and handled debt and see if you can't find a comfortable fit.
Thank you for your feedback on my query. I shall go and have an depth chat with bank/accountant to see what will work out best.
Frizzle. that my adult children will not be left with the responsibility of debts/loans that I have incurred.........

Is there an issue with inheriting debt if it comes with a larger equity stake?

I wouldn't wind down on a small risk that you might leave behind debt. Having said that though, if you are well advanced in years then it might change things a little. Is it something that should be talked about with your children?

It depends where you are in your investment journey.
If you are at the end sure pay down the IP.
If you are younger you could buy 2 more IP's with the money.
Pay down the IP ( value $400k) and in 10 years you have a property worth $800K (assuming doubling every 10 years) ($400K clear)

Buy 2 IP's (say worth $400 each).
You now have 3 properties worth $1.2M. In 10 yrs time they are worth $2.4M. Sell one ($800) and pay the loan of the other one. You now have 2 IP's (worth $1.6M). You still have the original loan so $800K clear)

That's the way lots of people go. Buy many, wait for them to rise. Sell some to pay down the debt on others. The more properties you have, the more will gain equity.
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Thanks Gools and Travelbug, I still feel like a spring chicken even though in reality that is not the case. Hope though that I have many years left to play the wealth creation/enjoying a comfortable life game. Reading all suggestions with interest.