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Hi there,
Need some input regarding a dilemma I have. Although it may seem like a cliche question, I still need advice.
I currently have a vehicle that I owe R140k to settle. I have recently paid off one of my rental property loans and have R450k saved in an access bond.
The interest rates on the vehicle and property loan are similar but payment terms are 6 and 20 years respectively.
My question is do I settle the "bad debt" aka vehicle loan with my access bond savings or do I keep the money in the access bond? It is a rental property and I will still make a profit on the property if I take the R140k out.
I am looking at new business ventures in the next year or so but haven't bedded down exactly what I would like to pursue, which will require capital input. So also worried that I tie up my capital in a depreciated asset.
Last bit of background. The vehicle payment is a 10% expense to my salary.
Not to keen on "bad debt" for extended periods of time but not sure if I am being silly contemplating using hard-saved capital to pay-off a vehicle. Should I rather keep the capital and make high return investments.
Vehicle or property loan?
Any advice will be appreciated.
Thanks
Need some input regarding a dilemma I have. Although it may seem like a cliche question, I still need advice.
I currently have a vehicle that I owe R140k to settle. I have recently paid off one of my rental property loans and have R450k saved in an access bond.
The interest rates on the vehicle and property loan are similar but payment terms are 6 and 20 years respectively.
My question is do I settle the "bad debt" aka vehicle loan with my access bond savings or do I keep the money in the access bond? It is a rental property and I will still make a profit on the property if I take the R140k out.
I am looking at new business ventures in the next year or so but haven't bedded down exactly what I would like to pursue, which will require capital input. So also worried that I tie up my capital in a depreciated asset.
Last bit of background. The vehicle payment is a 10% expense to my salary.
Not to keen on "bad debt" for extended periods of time but not sure if I am being silly contemplating using hard-saved capital to pay-off a vehicle. Should I rather keep the capital and make high return investments.
Vehicle or property loan?
Any advice will be appreciated. Thanks