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The Experts

What should I do with my inheritance money?

The Experts
Wednesday, February 21, 2018

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What would you do with your money if you were lucky enough to inherit 70 thousand dollars?

Jenny from Korumburra, Victoria called into Talking Lifestyle’s On the Money to ask what she should do with hers – put the money into shares or buy her mother’s house to use as a rental?

The right decision will largely depend on the location of the rental property, according to financial commentator Peter Switzer.

“Is it a place where many people like to go and hang out? I always say, go and buy a place where you are guaranteed a tenant.” Peter said.

The trouble with inheritance is that it's often personal. While Jenny preferred to put money into her mother’s home, her husband thought shares were the better option.

That’s a view Peter agreed with after listening to Jenny’s description of the property.

“It’s not a place where trendies like to hang out on the weekend. It’s a little country town and currently there are no rental properties available there,” Jenny said.

“But it’s growing very slowly… and I would like there to be a permanent tenant there,” Jenny said.

However, “If there’s no chance of having a permanent tenant then I’d go with your husband – buy the shares!,” said Peter.

Like any family decision, there are always important factors to consider. If the shoe fits then you buy it!

Click the video above to listen to the full interview.

Published: Wednesday, February 21, 2018

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