Age: 46
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 80000
Annual gross income of spouse: 3500
Monthly take-home pay 4300
Type of employment: self-employed
In general are you:
(b) saving? we can save easily but we tend to spend it after a while or we have recently had college costs.
Rough estimate of value of home 600,000
Amount outstanding on your mortgage: 105,000 @ 530/month
What interest rate are you paying? ECB + 0.25%
Other borrowings – car loans/personal loans etc 2 car loans total 300/month
Do you pay off your full credit card balance each month? Full
If not, what is the balance on your credit card?
Savings and investments: None
Do you have a pension scheme? Yes
Do you own any investment or other property? 5acre field in North Co. Dublin with no possibility of development
Ages of children: 22, 18
Life insurance: Mortgage protection, plus 1 joint life first death policy for 215,000
What specific question do you have or what issues are of concern to you?
We want to help our children get on the property ladder, only because it seems so unbalanced, however we have no savings.
If we put our minds to it we can save a good bit as we can be quite frugal, but there are 5 years of college ahead of us and a car replacement, although I can be frugal with that.
My son will be finished college in 1.5 years, and my daughter will be 4 years behind. One year is an expensive masters.
Once each is finished college I would to offer each one ~4 years of cheap rent, and yet not live at home, so they have some freedom and can still save.
My first thought was to build a granny flat. I have my own plans drawn up and a builder said they seemed fine for the site, but obviously process needs to be followed.
The idea is that an additional/extended mortgage for a max 100,000build (things are expensive!) would be about 500/month and I would charge that as rent. Considering rent elsewhere would be 1500ish then they could put aside 1000 as savings. They could have a partner with them for the same price I guess. So, after 4 years they would have ~50k saved minimum, possibly lots more between 2, and have had some independence. Repeat this for 2nd child. Following that it could become a granny flat for and aged parent(s) or a short term holiday let for us providing income into retirement. If things went south we could afford an extra 500/month ourselves but it's not ideal.
My 2nd thought is to buy a cheap property somewhere remote. We like nature/seclusion. Possibly a doer-upper to some degree, so the price could be 100-150 max. The mortgage on this could be 700ish I guess. We would move there and let our kids live in the PPR but pay rent for 4-8 years as above. Once done we could sell the country house or use it for holiday lets for retirement income.
I understand in both cases it would mean each child wanting to live in the same area for ~4 years after college, but the likelihood is that they will want to be near Dublin, and they are both keen to save to move out and if they move out straight away the alternative is to have a single room in a house share with strangers etc. So they are not opposed to this idea.
At some point we could rent out the PPR for 2500-3000/month but we're not really interested in being part of the high-rent problem. I don't agree with the concept of a 2nd home as it's just pushing up prices. I have turned down many chances in the boom and since then to acquire an investment property. I don't really mind doing it though if the 2nd home is something that is derelict, or is in an area with less population and might bring income to the area via a holiday let, and isn't taking away from the pool of houses that people need.
As you can see I'm at the early stages of thinking about this. I a bit overwhelmed reading on various bits and pieces for each option. I'm not really familiar with investment mortgages, or 2nd mortgages, or renting to family, or renting as holiday lets and all the nuances.
I'm just looking for initial reactions from people and obviously I could then create more specific threads.
An online calculator said I could borrow 290k, so I have about 180k equity.
One question I so have is, could I release 100-120k ish on my super low tracker, that I don't want to lose, and just buy a country cottage outright?
Many thanks for your input.
Spouse’s/Partner's age: 47
Annual gross income from employment or profession: 80000
Annual gross income of spouse: 3500
Monthly take-home pay 4300
Type of employment: self-employed
In general are you:
(b) saving? we can save easily but we tend to spend it after a while or we have recently had college costs.
Rough estimate of value of home 600,000
Amount outstanding on your mortgage: 105,000 @ 530/month
What interest rate are you paying? ECB + 0.25%
Other borrowings – car loans/personal loans etc 2 car loans total 300/month
Do you pay off your full credit card balance each month? Full
If not, what is the balance on your credit card?
Savings and investments: None
Do you have a pension scheme? Yes
Do you own any investment or other property? 5acre field in North Co. Dublin with no possibility of development
Ages of children: 22, 18
Life insurance: Mortgage protection, plus 1 joint life first death policy for 215,000
What specific question do you have or what issues are of concern to you?
We want to help our children get on the property ladder, only because it seems so unbalanced, however we have no savings.
If we put our minds to it we can save a good bit as we can be quite frugal, but there are 5 years of college ahead of us and a car replacement, although I can be frugal with that.
My son will be finished college in 1.5 years, and my daughter will be 4 years behind. One year is an expensive masters.
Once each is finished college I would to offer each one ~4 years of cheap rent, and yet not live at home, so they have some freedom and can still save.
My first thought was to build a granny flat. I have my own plans drawn up and a builder said they seemed fine for the site, but obviously process needs to be followed.
The idea is that an additional/extended mortgage for a max 100,000build (things are expensive!) would be about 500/month and I would charge that as rent. Considering rent elsewhere would be 1500ish then they could put aside 1000 as savings. They could have a partner with them for the same price I guess. So, after 4 years they would have ~50k saved minimum, possibly lots more between 2, and have had some independence. Repeat this for 2nd child. Following that it could become a granny flat for and aged parent(s) or a short term holiday let for us providing income into retirement. If things went south we could afford an extra 500/month ourselves but it's not ideal.
My 2nd thought is to buy a cheap property somewhere remote. We like nature/seclusion. Possibly a doer-upper to some degree, so the price could be 100-150 max. The mortgage on this could be 700ish I guess. We would move there and let our kids live in the PPR but pay rent for 4-8 years as above. Once done we could sell the country house or use it for holiday lets for retirement income.
I understand in both cases it would mean each child wanting to live in the same area for ~4 years after college, but the likelihood is that they will want to be near Dublin, and they are both keen to save to move out and if they move out straight away the alternative is to have a single room in a house share with strangers etc. So they are not opposed to this idea.
At some point we could rent out the PPR for 2500-3000/month but we're not really interested in being part of the high-rent problem. I don't agree with the concept of a 2nd home as it's just pushing up prices. I have turned down many chances in the boom and since then to acquire an investment property. I don't really mind doing it though if the 2nd home is something that is derelict, or is in an area with less population and might bring income to the area via a holiday let, and isn't taking away from the pool of houses that people need.
As you can see I'm at the early stages of thinking about this. I a bit overwhelmed reading on various bits and pieces for each option. I'm not really familiar with investment mortgages, or 2nd mortgages, or renting to family, or renting as holiday lets and all the nuances.
I'm just looking for initial reactions from people and obviously I could then create more specific threads.
An online calculator said I could borrow 290k, so I have about 180k equity.
One question I so have is, could I release 100-120k ish on my super low tracker, that I don't want to lose, and just buy a country cottage outright?
Many thanks for your input.