mortgage in PPOR technically finished - what to do next?

Discussion in 'Share Investing Strategies, Theories & Education' started by jmy 82, 15th Dec, 2017.

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  1. jmy 82

    jmy 82 Member

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    As the subject goes, the mortgage in the PPOR is technically done; meaning my offset is equal to my PPOR loan ($350k)...

    I have around $55k worth of shares and sitting around a house currently valued at $750K (outer East of Melbourne)...

    Looking for suggestions on what to do next? I think we can easily save $6K a month...

    mid-30's - DINK couple...
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Well done - that’s an awesome effort.

    I’m not going to suggest anything right now because it’s Friday night, but just sit in the glow of that for a bit and celebrate appropriately before you get to phase 2.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You mean the non-deductible debt can be paid off. Your mortgage should continue as you could debt recycle by paying down the loan and reborrowing at owner occupied rates. Do you have investment loans?
     
  4. jmy 82

    jmy 82 Member

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    That is why I said, the mortgage is technically done... PPOR mortgage is currently being fully offset by the $$ in the offset account.

    No, we don't have any other loan... I am thinking of opening a separate sub-mortgage and use the money accordingly as and when buying opportunities in the shares market arises.

    Appetite for an IP is currently zilch at the moment...
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You are confusing a mortgage with a loan. The mortgage is a charge on the title the loan is the borrowing of money. You could have no loan but still have a mortgage or you could have a loan without a mortgage
     
  6. jmy 82

    jmy 82 Member

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    You are trying to make it too technically - i may have interchanged with my terms but i think you know what i meant...

    Loan = offset account...

    But anyway, thanks for "TRYING" to help... :)
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    good work

    Id suggest the first thing would be to look at working out what your goals are.

    Sit with someone that can help you extract those goals and then find away to get them.

    Sounds like you have some great resources and making the most of them should be easy as long as you advice that is suited to YOU.

    ta
    rolf
     
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  8. Morgs

    Morgs Well-Known Member Business Member

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    Congratulations, you've done well to be in the position you are in at that age!

    With a "full" offset account and an exceptionally low rate of return on cash accounts there are certainly opportunities to put both that equity and future savings to work for a better return.

    What are your long term plans? Is there something specific that you'd like to achieve? Have you thought about your retirement plan? I'd start there....
     
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  9. Nodrog

    Nodrog Well-Known Member

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    Thought I’d piggyback off this thread. Hope the OP doesn’t mind.

    Also the same in that our NAB Home P&I loan is fully covered by cash in Offset Account.

    So in effect we’re currently debt free and our also debt free final IP (with LOC currently undrawn) will likely be sold this FY. So no LOC anymore when IP sold. Despite my aversion to debt nowadays no doubt come the next share market crash I won’t be able to resist “conservatively” using some leverage to top up our holdings.

    Haven’t done anything with loans for a long time so need to look at what might be the most useful product. We have everything with NAB (package) including credit cards etc so reluctant to switch lenders. Trouble is from memory I think NAB are not all that innovative with their property product offerings?

    Any brokers here able to comment on NAB property loan products against PPOR that might be suitable for a greedy retiree in times of sharemarket gloom?

    I think I have my retirement plan sorted:).

    Thanks in advance.
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    NAB are very inflexible.

    Your best bet may be to try to extend back to 30 years and an IO period of 5 years. Standard Variable. Then paydown the loan to $1 and redraw to invest when needed.
    Perhaps split the loan up a bit into smaller portions while you are extending.
     
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