Age: 45
Spouse’s/Partner's age: 42
Annual gross income from employment or profession: 100K (potential bonus up to 15%)
Annual gross income of spouse: 40K
Monthly take-home pay : Around 6500 per month combined
Type of employment: Myself private, wife is part time public sector
In general are you:
(a) spending more than you earn, or
(b) saving? Saving
Rough estimate of value of home: 515K (based on most recent sales in the area)
Amount outstanding on your mortgage: 75K
What interest rate are you paying? tracker, ECB+ 0.9% (5 years left on term)
Other borrowings – car loans/personal loans etc: 320
Childcare: around 1K a month
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments: 20K cash
Do you have a pension scheme? Yes - my current fund is around 100K. Contributing 12% per month (7% from employer) , wife has 20 years service (split evenly between part time and full time) but I've no idea what that would be worth (probably should check!)
Do you own any investment or other property? No
Ages of children: 3, 8, 12
Life insurance: Yes
We have 3 kids and our current house is going to be a squeeze as the kids get older due to bedroom sizes. The 2 eldest are currently sharing but I can see a situation where they will be looking for separate bedrooms in the next year or so which will mean the youngest will be left with the box room which is tiny. So we've been contemplating moving to a larger house within the area and given that there are practically zero new houses being built means buying an older house and having to spend money on renovations. I think that we'd be looking at a spend of 700-750K on a house ( incl renovations) to make a meaningful move.
The question is, are we mad to consider taking on 300K+ of debt at our ages ( given we are about 5 years from being mortgage free) ?
My head says we should stay where we are but the heart says move! I'd be interested in some unbiased opinions.
Spouse’s/Partner's age: 42
Annual gross income from employment or profession: 100K (potential bonus up to 15%)
Annual gross income of spouse: 40K
Monthly take-home pay : Around 6500 per month combined
Type of employment: Myself private, wife is part time public sector
In general are you:
(a) spending more than you earn, or
(b) saving? Saving
Rough estimate of value of home: 515K (based on most recent sales in the area)
Amount outstanding on your mortgage: 75K
What interest rate are you paying? tracker, ECB+ 0.9% (5 years left on term)
Other borrowings – car loans/personal loans etc: 320
Childcare: around 1K a month
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments: 20K cash
Do you have a pension scheme? Yes - my current fund is around 100K. Contributing 12% per month (7% from employer) , wife has 20 years service (split evenly between part time and full time) but I've no idea what that would be worth (probably should check!)
Do you own any investment or other property? No
Ages of children: 3, 8, 12
Life insurance: Yes
We have 3 kids and our current house is going to be a squeeze as the kids get older due to bedroom sizes. The 2 eldest are currently sharing but I can see a situation where they will be looking for separate bedrooms in the next year or so which will mean the youngest will be left with the box room which is tiny. So we've been contemplating moving to a larger house within the area and given that there are practically zero new houses being built means buying an older house and having to spend money on renovations. I think that we'd be looking at a spend of 700-750K on a house ( incl renovations) to make a meaningful move.
The question is, are we mad to consider taking on 300K+ of debt at our ages ( given we are about 5 years from being mortgage free) ?
My head says we should stay where we are but the heart says move! I'd be interested in some unbiased opinions.