I have 70k saved up potentially ready for a property purchase in the high 200k range however my wife has a land loan of 150k which we will build the family home on in the future. Naturally the accountant/financial advisor I?m assuming would suggest putting the 70k into her loan therefore reducing her non-deductible debt, however on the other hand would I be right in thinking a property investor would go in the other direction & use these funds toward a property purchase for better longer term returns?
I?m no finance specialist but with basic math reducing the land from 150k to 80k would save almost 4k in non deductible interest however on the other hand a property that for example was 300k returns on average 5% would give me 15k yearly & therefore 10+k better off? Then in say 5 years use the equity to purchase another? Im sure the wife would enjoy lower repayments but I think longer term we invest in property; hopefully someone can agree investing is the way to go. Thanks Eddie
I?m no finance specialist but with basic math reducing the land from 150k to 80k would save almost 4k in non deductible interest however on the other hand a property that for example was 300k returns on average 5% would give me 15k yearly & therefore 10+k better off? Then in say 5 years use the equity to purchase another? Im sure the wife would enjoy lower repayments but I think longer term we invest in property; hopefully someone can agree investing is the way to go. Thanks Eddie