Offset vs dividend shares

Hello everyone.

The time has come for me to rent out my PPOR, i have about $20,000 sitting in an offset account saving me anywhere from $15 - $20 a month on interest.

$180 to $240 a year roughly.

If i rent it out there is no point keeping money in the offset account when i could put 20g on a shares returning 5% making $1000 pa.

Correct??

Thanks Matt.

 

Your only paying 1.2% interest? Doubt it.

Risk is not the same.

Offset is worth more for ppor loan because the interest is not tax deductible. Offset against ip still has benefit. Shares can go down.

 

Depends.

Where are you moving to?
Whats your interest rate?
will your shares increase or go down in value?

 

3.26% interest.
PPOR is a 4/2 house.
Moving into a unit down the road,

While it was a PPOR i was paying maximum i could off loan and putting extra in offset

Terry probably drop who knows was mainly focus on the dividend. And building portfolio with extra i use to pay off loan.

 

Is the unit paid off?

 

Sorry the unit isnt mine renting it off someone else.

So ill have investment properties but own no PPOR.

 

ok, in that case it if you think you can get a better return on investing the money than you pay in interest it might be worth investing.