Hello,
I'm not sure if this is the right place for this thread so @Brendan Burgess please feel free to move or edit if you see fit.
I did a Money Makeover post a while back which gave me really excellent responses and lots to think about. That post was here.
I'm thinking ahead a bit now and I'd be interested in peoples views on this.
We have one property which we live in and get rent a room every year on this at €1050 per month.
Going forward my oldest kid is 15 - three more years in school plus college.
My youngest kid started secondary - six more years in school plus college.
We have the college funds pretty much saved which is good.
Our house is an old house and we have done a lot of refurb on it to date. Both self employed so not great pension funds or big salaries but its been fine.
Down the road however I think we dont need the big house - however my parents in law live close to us, on same parcel of land, same entrance etc so very difficult to carve up property and right of way etc. My main thoughts about the bigger house are 1. Its costly to run, refurb, heat, electricity etc. 2. We will not have kids here in about 6 years onwards so will need less space. 3. Energy etc is going to cost far more going forward.
We have the option to use an older property which my parents in law own close to us - my wife has exhausted all thresholds for inheritance so if this was transferred to us we would pay tax in whatever portion due. It is worth about €250K.
My thoughts were that if we got this house (we will do in time as my wife is an only child) then we could extend it a little and put a super insulated extension in place - that would leave us with a three bed house - right beside where we live where we could do more efficient energy system (solar, air to water) Better insulation, less refurb costs etc. We would get this house for the cost of the extension - maybe 150 - 200K and the cost of inheriting it - 33% of the value??
So future proofed a little - same area for my kids, close to grandparents etc.
For the main house we could rent the house and easily carve an apartment off the side so we would have two properties with separate doors etc (there was a small apartment at side of house always). I asked a local estate agent about this and she said the apartment could get €1800 a month and the main house €2000 - 2500 per month- its a good area and rents are stable. Obviously this would be taxable and we would have refurb costs. My question is - how should we go about funding the new build if we did that? We have €160k in account for kids college so maybe can use some of that? Would we be able to get a mortgage in 6 years for the rest? Would rental income coming in help our case? We would be 57 + 58 years old then. I guess we are asset rich and cash poor - cannot sell the house but can rent it and the apartment if required.
Anyone got any creative ideas on what they would do?
Ideally smaller house, less costs, better energy use. Of course in time if my PIL do pass we can sell house etc and will inherit cash etc then but this piece is about futureproofing the next few years.
Thank you.
I'm not sure if this is the right place for this thread so @Brendan Burgess please feel free to move or edit if you see fit.
I did a Money Makeover post a while back which gave me really excellent responses and lots to think about. That post was here.
I'm thinking ahead a bit now and I'd be interested in peoples views on this.
We have one property which we live in and get rent a room every year on this at €1050 per month.
Going forward my oldest kid is 15 - three more years in school plus college.
My youngest kid started secondary - six more years in school plus college.
We have the college funds pretty much saved which is good.
Our house is an old house and we have done a lot of refurb on it to date. Both self employed so not great pension funds or big salaries but its been fine.
Down the road however I think we dont need the big house - however my parents in law live close to us, on same parcel of land, same entrance etc so very difficult to carve up property and right of way etc. My main thoughts about the bigger house are 1. Its costly to run, refurb, heat, electricity etc. 2. We will not have kids here in about 6 years onwards so will need less space. 3. Energy etc is going to cost far more going forward.
We have the option to use an older property which my parents in law own close to us - my wife has exhausted all thresholds for inheritance so if this was transferred to us we would pay tax in whatever portion due. It is worth about €250K.
My thoughts were that if we got this house (we will do in time as my wife is an only child) then we could extend it a little and put a super insulated extension in place - that would leave us with a three bed house - right beside where we live where we could do more efficient energy system (solar, air to water) Better insulation, less refurb costs etc. We would get this house for the cost of the extension - maybe 150 - 200K and the cost of inheriting it - 33% of the value??
So future proofed a little - same area for my kids, close to grandparents etc.
For the main house we could rent the house and easily carve an apartment off the side so we would have two properties with separate doors etc (there was a small apartment at side of house always). I asked a local estate agent about this and she said the apartment could get €1800 a month and the main house €2000 - 2500 per month- its a good area and rents are stable. Obviously this would be taxable and we would have refurb costs. My question is - how should we go about funding the new build if we did that? We have €160k in account for kids college so maybe can use some of that? Would we be able to get a mortgage in 6 years for the rest? Would rental income coming in help our case? We would be 57 + 58 years old then. I guess we are asset rich and cash poor - cannot sell the house but can rent it and the apartment if required.
Anyone got any creative ideas on what they would do?
Ideally smaller house, less costs, better energy use. Of course in time if my PIL do pass we can sell house etc and will inherit cash etc then but this piece is about futureproofing the next few years.
Thank you.