Q I am 39 and have been saving and investing now for nine years. I hold two investment properties worth $800,000 and $570,000, with loans of $280,000 and $350,000 respectively. I also have $180,000 in super, $240,000 in equities and $50,000 in cash for an emergency fund.
My question is, should I sell down my stocks and funds and pay off one of the houses? The house is paying $30,000 a year before tax and the equity portfolio is fully franked, paying $30,000.
My immediate thought, Josh, is why sell? I am very concerned that I am missing something here. Sure, we have higher rates of interest and cost-of-living pressures. You, however, are in a wonderful position. With significant equity in your properties I suspect they are pretty close to…