What would you do??

[kinga4610]

This is a question to all the seasoned investors out there. We are about to purchase another IP for around the $300,000, and have $180,000 cash. I have never had this sort of cash to play with in the past, just usually borrow the lot. But this time is different. I expect rent will be 5%. We don’t mind having to top up a loan a little but not the balance of a full loan of $300,000 less rent. What are your thoughts? We have enough assets to cover any loan we choose to take out. Tossing around a few ideas at the moment but am now starting to confuse myself with all the options.

What would you do??

 

[letiha]

Put in enough so you don't have to pay LMI, and then stick the rest in an offset account so it is handy if you need funds.

 

[kinga4610]

Thanks Letiha. Should I consider another property with the balance??? Not necessarily straight away. Perhaps a cheaper property?