Finances2020
Registered User
- Messages
- 15
Personal details
Age: 49
Spouse's age: 51
Number and age of children: 2 (11 and 14)
Income and expenditure
Annual gross income from employment or profession: 67,000
Annual gross income of spouse/partner: 75 000
Monthly take-home pay: 7736 (Inc. Children's allowance 280)
Type of employment - Employee
Employer type: public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Spending most of what we earn
Summary of Assets and Liabilities
Family home value: 400,000
Mortgage on family home: 160,000
Net equity: 240,000
Family home mortgage information
Lender - Avant
Interest rate - 2.25% fixed for next 5.5 years
Remaining term: 13.5 years
Monthly repayment: 1310
Other borrowings – car loans/personal - none
Do you pay off your full credit card balance each month? Yes
Pension information - public servants
Other savings and investments:
Cash - 70k
Other information which might be relevant
Life insurance: yes, both covered
What specific question do you have or what issues are of concern to you?
We want to buy a house in Spain - approx 75k plus another 12/13k or so in taxes, fees, solicitors etc.
If we buy then we have no savings left plus a loan - 20k roughly. Plus we'd have to furnish the house.
We can't decide if this is madness- leaving ourselves too financially vulnerable or if its a good idea - house is cheap now, we'd use it for holidays but ultimately its for retirement where we would live for part of the year. If we wait until retirement house prices may have jumped substantially.
We accept that this is not a good financial investment, we wont ever rent it out or make money from it but it is an investment in our future - my husband speaks excellent Spanish and it has always been a dream to have a house in Spain.
We argue both sides constantly but cant seem to have clarity on whether this is an acceptable financial risk or too big of a risk.
We'd love some thoughts from those with no emotional investment in this!
Thanks in advance
Age: 49
Spouse's age: 51
Number and age of children: 2 (11 and 14)
Income and expenditure
Annual gross income from employment or profession: 67,000
Annual gross income of spouse/partner: 75 000
Monthly take-home pay: 7736 (Inc. Children's allowance 280)
Type of employment - Employee
Employer type: public servants
In general are you:
(a) spending more than you earn, or
(b) saving?
Spending most of what we earn
Summary of Assets and Liabilities
Family home value: 400,000
Mortgage on family home: 160,000
Net equity: 240,000
Family home mortgage information
Lender - Avant
Interest rate - 2.25% fixed for next 5.5 years
Remaining term: 13.5 years
Monthly repayment: 1310
Other borrowings – car loans/personal - none
Do you pay off your full credit card balance each month? Yes
Pension information - public servants
Other savings and investments:
Cash - 70k
Other information which might be relevant
Life insurance: yes, both covered
What specific question do you have or what issues are of concern to you?
We want to buy a house in Spain - approx 75k plus another 12/13k or so in taxes, fees, solicitors etc.
If we buy then we have no savings left plus a loan - 20k roughly. Plus we'd have to furnish the house.
We can't decide if this is madness- leaving ourselves too financially vulnerable or if its a good idea - house is cheap now, we'd use it for holidays but ultimately its for retirement where we would live for part of the year. If we wait until retirement house prices may have jumped substantially.
We accept that this is not a good financial investment, we wont ever rent it out or make money from it but it is an investment in our future - my husband speaks excellent Spanish and it has always been a dream to have a house in Spain.
We argue both sides constantly but cant seem to have clarity on whether this is an acceptable financial risk or too big of a risk.
We'd love some thoughts from those with no emotional investment in this!
Thanks in advance