Advice wanted: Inheriting $200k - are we right to put it all into the mortgage?

[newhopetoday]

@deerlane Transfer rates are pretty good too

 

[asouthernwriter]

@lostgirl17 Agree with the offset. You never know what’s going to happen when you have kids.

 

[sean1999]

@lostgirl17 Yep, was checking comments for wise. Easy to use and good rates. Have used a number of times for uk to aus and it’s great

 

[thecorams]

@rhythmofthenight Do you have an offset account?

If you were to invest, you would need to be beating the mortgage rates (so >6% a year).

Personally, I would put it in the offset account and use some money to invest in the house. You will get guaranteed money back if you sell in 2 - 5 years time.

If you wanted to put some into stocks, go for it. But start small and be aware that you might not get much/any returns compared to the house.

I have no idea about getting it from the UK. Paper bags? Large suitcase? /s

 

[christhope]

@thecorams

If you were to invest, you would need to be beating the mortgage rates (so >6% a year).

Not just the mortgage rates but the tax bill as well. They are fairly good earners so any additional income would be taxed at a high rate.

I agree with an offset account. It keeps all your options open whilst enjoying a respite from mortgage interest rates. Heck, let it sit there while you make payments on renos.

 

[rhythmofthenight]

@thecorams I’m going to sound really financially illiterate here but - my concern with offset is that we actually had $10k in the account attached to our fixed rate mortgage last year and when the new year turned over it vanished.

Like it automatically got considered as a payment and we didn’t fuss because we have a $20k redraw facility but it makes me hesitant to put more in!