Cash-rich, how should I invest?
Question from Selina updated on 16th September 2011:
Our expert Kris Pedersen responded:
You should probably convert your mortgage to a revolving credit facility so that you can direct your cash into the mortgage thus saving on interest but still having the flexibility to withdraw the funds should you need them for a deposit.
From an asset protection point of view I would recommend as well to remove the mortgage on what of the properties so it is completely unencumbered as if you only have $20,000 owing the bank should have sufficient security with just the one property.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.