Looking for genuine advice. I (35) and my partner (38) have two young kids and salaries of $270k and $42k respectively. We have a $1.5m mortgage on a house we built (finished last year) worth c. $2.3m with current repayments of c.$1,800 p/w. Most of the loan (75%) is currently interest only on a Back My Build floating discount (which we lose in April next year).
We end up with about $4k in savings a month (or maybe a bit more) and have a $50k (net) bonus coming in October.
Should we be trying to invest our monthly savings? If so where? Or should we just be paying down debt given the current interest rate environment?
[edit] just wanted to say thanks to everyone for the great responses. Got me thinking and I think I’m settled on the strategy of paying down as much principal as I can.
We end up with about $4k in savings a month (or maybe a bit more) and have a $50k (net) bonus coming in October.
Should we be trying to invest our monthly savings? If so where? Or should we just be paying down debt given the current interest rate environment?
[edit] just wanted to say thanks to everyone for the great responses. Got me thinking and I think I’m settled on the strategy of paying down as much principal as I can.