Hello again PFNZ.
I come here again asking for your wonderful advice please. My partner and I are planning on leaving NZ in November 2024 for a year or so to travel and work elsewhere before coming back to NZ to start a family.
We are currently having a discussion between ourselves between the best way of saving for this whilst managing our mortgage which we will be renting out whilst we're not here. We have two obvious options to us which my partner & I are disagreeing with. These are the below.
Option A - (Partners method) - Saving $3k a month in a term deposit for travel funds
Option B - (My method) - Saving $3k a month to pay down mortgage & use money already in offset account for travel funds
The numbers:
Option A - Partner has started a term deposit with Heartland Bank putting in $2k a month - on the 30 day one at 5.5%, (3.8% after tax I remind them) - This looks to be only $8/9 a month for $2k in an account
Option B - The highest interest rate portion of our mortgage is 7.05% with which the balance is at $130k - An extra $2k a month down payment on this portion of the mortgage would look to save over $100 a month.
For our offset account, this is charged at 7.89% and we estimate using $20k for 4 months before finding work and slowly paying back this back again.
Any advice/feedback would be much appreciated. I'm pretty sure that Option B works best in our favour just need to prove it to my partner
PS. If this is more of a question for a financial advisor then any recommendations on a good one then please let me know
I come here again asking for your wonderful advice please. My partner and I are planning on leaving NZ in November 2024 for a year or so to travel and work elsewhere before coming back to NZ to start a family.
We are currently having a discussion between ourselves between the best way of saving for this whilst managing our mortgage which we will be renting out whilst we're not here. We have two obvious options to us which my partner & I are disagreeing with. These are the below.
Option A - (Partners method) - Saving $3k a month in a term deposit for travel funds
Option B - (My method) - Saving $3k a month to pay down mortgage & use money already in offset account for travel funds
The numbers:
Option A - Partner has started a term deposit with Heartland Bank putting in $2k a month - on the 30 day one at 5.5%, (3.8% after tax I remind them) - This looks to be only $8/9 a month for $2k in an account
Option B - The highest interest rate portion of our mortgage is 7.05% with which the balance is at $130k - An extra $2k a month down payment on this portion of the mortgage would look to save over $100 a month.
For our offset account, this is charged at 7.89% and we estimate using $20k for 4 months before finding work and slowly paying back this back again.
Any advice/feedback would be much appreciated. I'm pretty sure that Option B works best in our favour just need to prove it to my partner
PS. If this is more of a question for a financial advisor then any recommendations on a good one then please let me know