Should i move to pay off mortgage now??

T

THEDUB

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ok folks,

I hope you are all well.

I have a mortgage for 120,000. House (in Dublin) is worth around 400,000 and i have been offered a job move to Waterford where things seem much ,much cheaper.
Currently in a 3 bed semi and could buy a 5 bed detached down there and either have no mortgage or a mortgage for about 25,000. We could also clear our personal debts of around 13 grand.

My job is quite secure compared to most peoples. I am aware that i am very lucky and in a fortunate position.

Does anyone think it would be madness to just sell up, pay off mortgage and buy a house outright in the sunny south east? Me and missus are 35 years old with 2 kids. Number 3 due in October.

Any advice would be much appreciated.
 
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By the way. My salary is 28k and the missus is getting about 2 hundred per week from her workplace which has just reduced her down to 2 days per week. Her job IS going to go at some point.

Even though our mortgage is small every month things are getting tighter!
 
I think it would be a rather short-sighted move. And you don't really need a 5 bed detached, in Waterford or anywhere else, do you?

As you have children, long-term you are better off staying in Dublin, where there are a lot of Universities for them.

As you are not struggling (even though things are getting tougher but they do for everyone) and you job is secure, I feel there is no need for you to move.

Your personal debts are quite low, you should be able to clear them anyway.
 
I am afraid I have to disagree.

I think it would be a move worth seriously considering.

Obviously we dont know the industry you work in and what the long term prospects are like where you are going, but leaving that aside - the life balance would be excellent in a move like that. Being mortgage free at 35 would be fantastic, and would enable you to have the quality time with family alot of people can only dream about.

Also - who knows you may need a larger home in the future so buying a five bed now may work out well.
 
Move if you think it will be better for you and your family - but don't move just because it means you will be mortgage free.

Money isn't everything.
 
Don't move, you need to spend time living in Waterford before you move there for good.
 
Move to Waterford?

Hi THE DUB,
I feel you have done really well for yourself and am envious of your position! Given your modest salary you have managed to time things well having only a small mortgage remaining and good equity built up in your existing home. Here are my thoughts for what they are worth:

1. Get a couple of valuations on your home to see if there is a consistent price put forward. Is other property in your area moving or is the market stagnant? No move to Waterford can take place without sale of the Dublin property, therefore you are going to become involved in a property chain.

2. You and your partner need to do a recce to Waterford and see if ye can really see yourselves settling there. Think about travel times to work, schools; primary & post primary, availability of childcare, rural isolation, distance to your extended families etc.

3. Personally I think I would make the move for the following reasons;

a. Quality of Life - Country living gives both you and your kids space to live in and a greater freedom.

b. Financial - Existing Mortgage can be cleared and as a cash customer for a new house you can pick and choose and bargain a lot in what is a depressed housing market. Plus, the money you were previously paying into your mortgage can now be diverted to many different things; your childrens college fund, annual sun holiday etc.

c. Cost of Living - In general it would be cheaper than in the big smoke. Go to Waterford for a weekend. Compare a bag of shopping or the cost of a pint in the local pub. See for yourself.

Best of luck in whatever you choose.

J.
 
sorry for late reply

Well, the idea is to move and rent for a while to see whats out there. Rent for ours should cover mortgage and rent where we go.

We are considering Wexford or Waterford so would need to pick a place after doing a good bit of research.

I know our mortgage is small but at the moment it is fixed rate. We go back to the bank in 18 months to negotiate again and i think we may get a fright as will others no doubt. ECB rate will increase by that time (maybe multiple times).

It seems like a good time to bail out of the city to tell you the truth. The area next to ours had major social problems during the 80's and, with the economic slump, these problems are returning thick and fast. Every other guy I talk to is out of work (Vast majority in the building game) and you can almost feel the stress coming out of their pores. They look tired, frustrated and ready for a heart attack.

The reason i am looking for space is that we have 2 kids, another on the way and , you never know, we might go again. Also, if my parents visit there is still plenty of room for them. My Ma isnt getting any younger so in the event of the old man popping off, or vice versa, one of them could stay if they so wished.

I think i have a complex about space as i was raised in very, very small (you wouldnt believe how small) accomodation back home in the heart of a big city. I always feel the need for more space for the kids and i want to do my best for them and give them a better life. Thats the rules of the game i believe

I still think its a good move. Get the mortgage off our backs for good, more space, better career options for me etc. Just need advice on where to live now
 
Move if you think it will be better for you and your family - but don't move just because it means you will be mortgage free.

Money isn't everything.

Agree fully.

This is not a decision about mortgages and houses. .

The main decision is where you and your wife want to live and work for the next 5 to 10 years.

If you want out of Dublin, move to Waterford where you have a job offer.

Make that decision first and then worry about the next decision.

Decision 2 Where will you live if you move to Waterford?

Rent for the time being. You will get to know whether you like your new job and your new location. You will get to know if you like Waterford. If you want to stay in Waterford, you will have the time to find where the best place to live is. There is no hurry. You have the money to buy.

Decision 3 You should consider selling your house in Dublin anyway

You don't seem to like your house or area in Dublin. So put the house on the market. If you get a good offer sell it.

If you have a fixed rate higher than the variable rate, which seems likely, they would normally charge you a penalty for switching to variable.

However, if your mortgage agreement gives you the right to move to a cheap tracker, they might be happy to allow you to switch to a cheap variable rate now. This would give you a cheaper mortgage and would allow you to pay off the mortgage without penalty when you sell your home.

Check your mortgage agreement first and then have a chat with the lender.
 
Don't underestimate the upkeep of a larger house. Maybe think a little smaller, no need to overdo it just because you'll have visitors occasionally. You'll also have the extra cost of a 3rd child and the loss of your wife's salary.

Waterford is a very nice town, and there are lovely places in the surrounding area. Quality of life can be very good there. And it certainly is the sunny south East. Sounds like a very good move. Interest rates are only going one way and that personal debt of 13K at no doubt high interest rates is eating into your income. Needs to be sorted.
 
We're in a similar situation to you. Except we're older, by ten years and have three children. We're not in negative equity but there's a 'sword of Damacleus' hanging over our heads, in that the company my husband works for depends on the 'Building Industry'! So you can guess how well the're doing!! There's a very high chance he will be out of a job within the next 6mths. As we could sell now and rent for a year or two before buying a smaller house, we could be mortgage free. So with that in mind, we've put our house up for sale. We will be taking a risk, but if we don't and he looses his job, the situation will be worse. What's galling is, we're giving up a tracker with BOS, however the aim is 'mortgage-free'. I wish his job was secure, but even if it was, our standard of living will be much better without a mortgage as with the drastic paycuts/loss of benefits he's taken, we wouldn't get by without 'childrens benefit' every month and we certainly can't save for the future or a rainy day. Mortgage-free, owing nobody is the dream. Our only problem is, NOBODY is buying! I feel for people who have lost their jobs and are in negative equity, we're lucky that we didn't fall for the lure of easy money that the banks were pushing on everyone. We've worked hard all our lives and this whole mess is not our making, no matter how some people try to blame 'wreckless borrowers'. The truth is the banks 'lost their heads' with reckless greed and the government were too stupid/incompetent to notice.
 
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If you would have a better standard of living - I would move. We are mortgage free and I have to say we sleep so much better at night because of it. The feeling that no one can take our house away from us is great. We are the same age as you with 2 kids
 
As you have children, long-term you are better off staying in Dublin, where there are a lot of Universities for them.

I totally disagree with this point. There's no reason children from waterford can't go to any university in dublin. This is no basis for a decision
 
we were in similar position to yourself last year. we moved out of the city with 2 young kids and it was the best thing we ever did. the big thing i noticed was every time you leave the house in dublin you spend money be it lunch, coffee, stuff for kids , when your out of the city you tend to go for a walk and incidentals are much less - i spent all my cash in cafes near phoenix park or bot gardens just to get babies out of the house !,the kids have bigger garden and you'll have a bigger house. we walk to the beach now every day and the kids won't be hanging out on the street corner in the city. and yes i know its perfectly fine to bring up kids in the city and they would have been fine i'm sure but i adored living in dublin but when you've young kids suddenly space and good schools are what you care about,
i also totally agree with brendan burgess 's comments- hes spot on.
 
I totally disagree with this point. There's no reason children from waterford can't go to any university in dublin. This is no basis for a decision

Of course, they can go to any university in Dublin, but it is going to cost a fortune in rent (especially for several children), that's what I meant.
 
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