What to do with R100K?

[Jehosefat]

But that would be 7.5% tax free. Any investment would, worst case be subject to income tax (of up to 45%) or, best case, subject to CGT (up to somewhere around 16% iirc). So you would, at the very least, have to make around 9% after fees to get a better return than your bond.

 

[Alacrity]

A once-off deposit of R100k wil reduce your term from 20 years to less than 15 (or even more) if you keep the monthly premium the same. And if you add that R5k a month also you will repay the bond in about 5 years.

I don't have your bond value but this should still be not too far off.

 

[supersunbird]

But that would be 7.5% tax free. Any investment would, worst case be subject to income tax (of up to 45%) or, best case, subject to CGT (up to somewhere around 16% iirc). So you would, at the very least, have to make around 9% after fees to get a better return than your bond.

What tax will R100 000 pull? 0%. One can worry about that when one has like R400 000 to save.

If you do not have an access bond, then put your money in the highest interest baring place you can find.

 

[Jehosefat]

What tax will R100 000 pull? 0%. One can worry about that when one has like R400 000 to save.

If you do not have an access bond, then put your money in the highest interest baring place you can find.

Assuming it is his only interest bearing savings and only generates interest income then your point is correct. Any equity or forex gains would be taxable under either income or capital gains tax.

 

[mic_y]

Where do you get properties in CBD for 100k? Like a parking space?

bwahaha good luck finding a parking space in the CBD for 100k... those go for .5 bar these days

 

[saturnz]

Where do you get properties in CBD for 100k? Like a parking space?

bwahaha good luck finding a parking space in the CBD for 100k... those go for .5 bar these days

yeah parking bays are well above 100k but you can still find storage spots for that price

here is an outdated ad, I was considering it but I may have my eyes on something else that came up, so I may actually be selling two of my units (in the same building as the ad)

 

[Splinter]

you can buy a property for R100k or actually a little less in Cape Town CBD and earn a net rental yield of 6% on it with capital growth of atleast 6% as well and without the usual risks that come with tenants

WTF?

 

[Splinter]

Interest rate on my bond is 7.5%, btw.

really? How did you manage that with no other assets?

 

[Splinter]

yeah parking bays are well above 100k but you can still find storage spots for that price

here is an outdated ad, I was considering it but I may have my eyes on something else that came up, so I may actually be selling two of my units (in the same building as the ad)

View attachment 501887

Storage space? This is a new one for me.

 

[saturnz]

Storage space? This is a new one for me.

Well you are the resident expert

anyway I'm not sure what happened with that pic paste, but its 10m2 storage in the Adderley Park for R95k, a crazy bargain especially since the rental will be atleast R1000pm

 

[SauRoNZA]

The goal is to pay off my house ASAP. I want immediate access to the funds as well. As for risk, well; I don't want to be left with less than what I started off with.
I don't know what other information to supply.
I will also be adding 5k to the account every month, and my bonuses.

So then park it in your home loan since that is your goal.

Odds are the saving in interest will out to most other investments which brings you to your end goal closer.

Not even sure how this is a question if that is the goal.

 

[crackersa]

I can't believe no one said hookerz and blow.

 

[SauRoNZA]

Well you are the resident expert

anyway I'm not sure what happened with that pic paste, but its 10m2 storage in the Adderley Park for R95k, a crazy bargain especially since the rental will be atleast R1000pm

So 8 years to make your money back while sitting on an illiquid asset.

Not exactly what the OP is looking for.

 

[CamiKaze]

really? How did you manage that with no other assets?

I work at a bank.

 

[CamiKaze]

So then park it in your home loan since that is your goal.

Odds are the saving in interest will out to most other investments which brings you to your end goal closer.

Not even sure how this is a question if that is the goal.

I thought that given my low interest rate, there might be some other vehicle I can use to earn more and pay off the house in that manner.

 

[HavocXphere]

I want to invest but I don't know where.
Please don't tell me about Bitcoin or Eth as I have no cooking clue htf that works.

A friend recommended Liberty Evolve, or Gateway.

I am looking at the FNB Money Maximiser that offers 7.05% per annum.

Can anyone advise what the best approach is when investing this amount?

Paying off debt is usually the best starting point as it's a guaranteed return. (saturnz will object).

If you're staying in SA long term then investigate the tax deductible options. It's hard to beat the certain return of paying the man less.

If neither of those appeal:

I'd avoid direct equity exposure for the moment - the markets are pretty near historic peaks so that's only going one direction in the medium term. So park the money somewhere and the pump it all into the stock market when that thing invariably craters. Here's why I'm saying stock market is probably not the smoothest move on a 3-12 month horizon.

http://www.multpl.com/shiller-pe/

 

[Splinter]

I thought that given my low interest rate, there might be some other vehicle I can use to earn more and pay off the house in that manner.

Well, if you truly have a bond at 7.5% (which, to be honest, I doubt), you would simply make (certain) money by getting a bigger bond and investing in fixed deposits.

 

[Splinter]

anyway I'm not sure what happened with that pic paste, but its 10m2 storage in the Adderley Park for R95k, a crazy bargain especially since the rental will be atleast R1000pm

Tell us more. 10m2 storage. What are the real parameters? 5x2? In what location in Adderly park? proof of rental income?

 

[HavocXphere]

Well, if you truly have a bond at 7.5% (which, to be honest, I doubt), you would simply make (certain) money by getting a bigger bond and investing in fixed deposits.

Thats bank employee rate

 

[SauRoNZA]

I thought that given my low interest rate, there might be some other vehicle I can use to earn more and pay off the house in that manner.

After costs probably not depending on how much risk and how liquid you want it.

Also keeping it in one place and focusing on getting the debt gone has psychological benefits.

Only you can decide really.