- Age: 38
Spouse’s/Partner's age: 34
Annual gross income from employment or profession: €120k
Annual gross income of spouse: €45k
Monthly take-home pay: €9000 (total)
Type of employment: e.g. Civil Servant, self-employed: Company owner/director
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving/investing €1500 per month
Rough estimate of value of home: €260k
Amount outstanding on your mortgage:€290k
What interest rate are you paying? 0.95 above ECB (Tracker) €880 per month
Other borrowings – car loans/personal loans etc: No
Do you pay off your full credit card balance each month? N/A
If not, what is the balance on your credit card? N/A
Savings and investments: €20k in 7 day access deposit account
€10k in various stocks. Company equity (don't intend to sell company until very long time)
Do you have a pension scheme? Yes presently €75k with monthly €2000 contributions paid via company
Do you own any investment or other property? Yes (2)
Rough estimate of value of property: €220k
Amount outstanding on your mortgage:€238k
Rough estimate of value of property: €200k
Amount outstanding on your mortgage:€140k
What interest rate are you paying? Property1: 5.15 KBC, €1790 per month 16.5 years remaining. Rent €1000 per month. Currently overpaying this mortgage by €2150 per month. Property2: 5.35 AIB, €860 per month 24.5 years remaining. Rent €1000 per month. (Both based in Dublin with long term tenants)
Ages of children: 6 and 2
Life insurance: yes (1.2 million policy)
What specific question do you have or what issues are of concern to you
I'm overpaying one of the mortgages on my investment property that is in negative equity and not self financing as the rent is low. (Was originally PPR but topped up mortgage for company start-up and deposit for house a long time ago). Im debating whether to A) keep up the overpayments and sell this once Im out of negative equity, B) continue overpaying which will see the mortgage cleared in approx 5 years or C) extend the mortgage by five years which would reduce the monthly payments to €1500. My medium/long term objective is to create some passive income from a broad range of assets.Im also conscious of the tax implications of having a mortgage free investment property. (I cant sell the other property as it is complicated however it is washing its face so Im happy out with that one). Any of your opinions/advise would be welcomed.- Previously posted this but my situation has changed slightly since then: http://www.askaboutmoney.com/threads/to-overpay-or-not.188291/
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