S
sydneygirl
Guest
Hi All, here's our situation, I've worried sick in the past but now i think I'm past that, I think we're still in a strong postion that we could hopefully tell the banks what we can afford to pay, do the banks really want to repossess our 3 houses? Practically everyone I know in the same boat, high earners, 2 incomes and just about managing to keep all the balls in the air!
Personal and income details
Income self: Self Employed (joint income 160K + and rising
Income history: Getting better and better for both of us, no shortage of work
Income partner/spouse: Own Business, doing very well and in a booming industry
number of children 2, primary
Amount of Mortgage 3 mortgages, 1.1 million
Mortgage 1 Home - 653K no capital paid only interest for 5yrs, capital due this Feb (Tracker €850 p.m. due to go up to about 2.2K in Feb when capital is due) Might be worth 400-450K)
Mortgage 2 - Apt - amount o/s - 305K worth 200K approx or less (tracker €1200 p.m , Rent in €1100) - can raise rent soon to €1200. Management fee 1600 p.y & Property tax, interest paid on rental income etc
Mortgage 3 - Rental House - amount o/s 148K worth 90K approx or less. (Mortgage variable 840 p.m, rent €500) no management fee but property tax etc
Home loan & 2 rental properties all bought between 2004 - 2007
Lender: ulster bank (2 trackers) & KBC (variable)
Amount outstanding: Almost all, think we've paid off about 30K
Value of homes: 650 - 750K
Interest rate: 150K Variable, rest tracker.
Monthly repayment: 2.9K (rent coming in 1600)
Amount in arrears: 0
Summary. Family home on interest only for 5yrs, up in February, payments currently about €800 tracker will go up to about 2K in Feb (when tracker rises up to about 3.3K eventually). I have to subsidise my rental properties by about €500 per month never mind repairs, property tax etc. We didn't buy them as investment, we both owned a house each, then bought family home together (it wasn't worth selling the other two at that stage and we thought they would rise in value!!!). Although we're managing to pay everything and probably have a nice life compared to most, I see problems ahead. We probably earn 160K between us and we're both doing very well and we see that rising but when trackers rates rise and we have more property tax on the 3 properties we'll be in trouble. The only way our situation is sustainable is we put the two rental in interest only forever and/or we're allowed to park some of our main house mortgage.
Other loans and creditors -
Overdraft 0
Credit Card 0
Credit Union Loan - 0
Car - 10K
Creche - 700
Other savings and investments - all savings now gone, I had 30K saved. Gone on maintenance fees, fixing things etc in rental houses. So I suppose this shows are income at the moment doesn't meet our outgoings.
How important is retaining the family home to you?
Which of the following best describes your situation?
I care! If it looked like we'd lose anything, I'd emigrate for a much better life then we're having. We're high earners, we work really hard and it all goes on mortgages and tax. When the property taxes will mean we'll have no extra cash.
What is your preferred realistic outcome?
Managing and reworking our existing debt, as I said we're both doing well and our incomes are getting higher all the time (we're lucky both in booming industries), I could see us paying all this off eventually but we need to rework it in the short term.
Personal and income details
Income self: Self Employed (joint income 160K + and rising
Income history: Getting better and better for both of us, no shortage of work
Income partner/spouse: Own Business, doing very well and in a booming industry
number of children 2, primary
Amount of Mortgage 3 mortgages, 1.1 million
Mortgage 1 Home - 653K no capital paid only interest for 5yrs, capital due this Feb (Tracker €850 p.m. due to go up to about 2.2K in Feb when capital is due) Might be worth 400-450K)
Mortgage 2 - Apt - amount o/s - 305K worth 200K approx or less (tracker €1200 p.m , Rent in €1100) - can raise rent soon to €1200. Management fee 1600 p.y & Property tax, interest paid on rental income etc
Mortgage 3 - Rental House - amount o/s 148K worth 90K approx or less. (Mortgage variable 840 p.m, rent €500) no management fee but property tax etc
Home loan & 2 rental properties all bought between 2004 - 2007
Lender: ulster bank (2 trackers) & KBC (variable)
Amount outstanding: Almost all, think we've paid off about 30K
Value of homes: 650 - 750K
Interest rate: 150K Variable, rest tracker.
Monthly repayment: 2.9K (rent coming in 1600)
Amount in arrears: 0
Summary. Family home on interest only for 5yrs, up in February, payments currently about €800 tracker will go up to about 2K in Feb (when tracker rises up to about 3.3K eventually). I have to subsidise my rental properties by about €500 per month never mind repairs, property tax etc. We didn't buy them as investment, we both owned a house each, then bought family home together (it wasn't worth selling the other two at that stage and we thought they would rise in value!!!). Although we're managing to pay everything and probably have a nice life compared to most, I see problems ahead. We probably earn 160K between us and we're both doing very well and we see that rising but when trackers rates rise and we have more property tax on the 3 properties we'll be in trouble. The only way our situation is sustainable is we put the two rental in interest only forever and/or we're allowed to park some of our main house mortgage.
Other loans and creditors -
Overdraft 0
Credit Card 0
Credit Union Loan - 0
Car - 10K
Creche - 700
Other savings and investments - all savings now gone, I had 30K saved. Gone on maintenance fees, fixing things etc in rental houses. So I suppose this shows are income at the moment doesn't meet our outgoings.
How important is retaining the family home to you?
Which of the following best describes your situation?
I care! If it looked like we'd lose anything, I'd emigrate for a much better life then we're having. We're high earners, we work really hard and it all goes on mortgages and tax. When the property taxes will mean we'll have no extra cash.
What is your preferred realistic outcome?
Managing and reworking our existing debt, as I said we're both doing well and our incomes are getting higher all the time (we're lucky both in booming industries), I could see us paying all this off eventually but we need to rework it in the short term.
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