how to spend 80k
Posted by: jason.g on 17 September 2005
i,m just about to recieve 80 thousand pounds redundancy money and am not sure what to do with it. my main thought is to pay off 80% of my mortgage giving me a stress free life. i,m only 33 years old and have a good technical employment background and am still very employable so working is not a problem. question is, do i pay off the mortgage, buy a second property to rent out, invest it long term, or go into business with someone looking for investors? i,m not too keen on taking risks with it as family life has to take priority. where can i find good info on investment opportunities or business investments? no silly answers please like buy a ferrari and become an international playboy (sounds good tho)
Posted on: 20 September 2005 by JamieWednesday
Fair enough. Make it both kidneys. And a sausage.
Posted on: 20 September 2005 by Deane F
Soaked overnight in Guinness?
Posted on: 20 September 2005 by Martin Payne
quote:
Originally posted by PatG:
Do not pay off the mortgage, at least for now.
Pat,
that's the advantage of an Offset mortgage.
You deposit the money into the same account as the mortgage, and the lender considers an equivalent amount of the mortgage "temporarily" paid off (ie no interest charged).
You can still get at the money, though, and just go back to paying interest on the mortgage.
In the meantime, money that would normally be paying interest is instead whittling away at the total owed.
cheers, Martin
Posted on: 21 September 2005 by reductionist
quote:
Originally posted by Martin Payne:
that's the advantage of an Offset mortgage.
You deposit the money into the same account as the mortgage, and the lender considers an equivalent amount of the mortgage "temporarily" paid off (ie no interest charged).
You can still get at the money, though, and just go back to paying interest on the mortgage.
In the meantime, money that would normally be paying interest is instead whittling away at the total owed.
cheers, Martin
I agree with Martin Payne's advice. There are some excellent offset mortgages available 4.74% for two years with no penalties on mortgages over £100000 is the best I know of - IFA only. So I also agree that you should seek some professional advice. £80000 is a large sum and good advice will make it larger.
Posted on: 21 September 2005 by Nime
But smaller in the short term.
Beware of bandits in suits.
Posted on: 22 September 2005 by KJ
Lets not be too sensible here; wait until you have a job offer, then put 60K into the mortgage,
12K kept as 'rainy day' money, and blow the rest (10%) on - say - a 252, or a CDS3 - or anything else which normally takes a year to pay for.
Enjoy!
Keith
