presidenttttt
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- 392
Age: 32
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: €70,000 (guaranteed annual increment ,plus any pay rise)
Annual gross income of spouse: €100,000; 80,000 basic plus 10% bonus, plus stock
Monthly take-home pay: €7600
Type of employment: Permanent
In general are you: Saving circa €1,900 a month - although we have overpaid mortgage with much of it.
Rough estimate of value of home: €320,000
Amount outstanding on your mortgage: €190,000, 980 a month, with about 20 years left.
What interest rate are you paying? 3.4%,
Other borrowings: Property; €200K outstanding at less than 2% interest. Repay 900e/month. Value €320,000 pre Covid (and post hopefully!!!). No other loans/credit cards etc.
Do you pay off your full credit card balance each month? Yes, always.
If not, what is the balance on your credit card? N/A
Savings and investments: €70K savings (have overpaid mortgage too)
Do you have a pension scheme? Yes. I pay 5%, company pays 10%. Partner pays 5%, company pays 5%.
Do you own any investment or other property? See other borrowing above
Ages of children: One, preschool age.
Life insurance: 7x salary through employer which can be topped up, and I believe 2x via taken with mortgage. Partner, not sure, say 3x salary.
What specific question do you have or what issues are of concern to you?
Two questions, firstly if there is any wisdom of upsizing, say to a 500K property, and trying to do so in a way we retain current property and how to do it, if its even possible? The current primary residence is in a very good location and good property, and one we could see ourselves wishing to utilise when retired and kids grown up, hence the thoughts around holding it.
The second property abroad is for family use only, so not attracting income. Upsizing was not on radar on the time. I suspect now it is most unhelpful in terms of leverage e.g lender limits on net 3.5-4.5 times salary, and net disposable income limitations (which vary from 38-49% depending what you read). Therefore I ask, how would banks account for the rental income from our current PPR in terms of cashflow, I gather some will not factor it at all, some do? if they do factor rental income, is it only a cashflow factor, or can it also assist in reducing the headline debt for loan to income ratio? There is also a small CGT consideration if we hold it.
That brings me to the retirement planning. I don't mind a certain amount of risk while young, as above that includes being fairly highly leveraged, so long as there is a clear plan and an exit strategy. I am thinking long-term, and not chasing yields in the here and now. In my mind, after upsizing, I would likely turn investment focus away from property and start considering trackers/equities, once rainy day fund rebuilt. In my mind I am thinking the younger we invest in property the better, avoiding mortgages in our 60s, and ideally earlier. I see mortgages as a way to force savings too. Is there better ways to look at all of this?
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: €70,000 (guaranteed annual increment ,plus any pay rise)
Annual gross income of spouse: €100,000; 80,000 basic plus 10% bonus, plus stock
Monthly take-home pay: €7600
Type of employment: Permanent
In general are you: Saving circa €1,900 a month - although we have overpaid mortgage with much of it.
Rough estimate of value of home: €320,000
Amount outstanding on your mortgage: €190,000, 980 a month, with about 20 years left.
What interest rate are you paying? 3.4%,
Other borrowings: Property; €200K outstanding at less than 2% interest. Repay 900e/month. Value €320,000 pre Covid (and post hopefully!!!). No other loans/credit cards etc.
Do you pay off your full credit card balance each month? Yes, always.
If not, what is the balance on your credit card? N/A
Savings and investments: €70K savings (have overpaid mortgage too)
Do you have a pension scheme? Yes. I pay 5%, company pays 10%. Partner pays 5%, company pays 5%.
Do you own any investment or other property? See other borrowing above
Ages of children: One, preschool age.
Life insurance: 7x salary through employer which can be topped up, and I believe 2x via taken with mortgage. Partner, not sure, say 3x salary.
What specific question do you have or what issues are of concern to you?
Two questions, firstly if there is any wisdom of upsizing, say to a 500K property, and trying to do so in a way we retain current property and how to do it, if its even possible? The current primary residence is in a very good location and good property, and one we could see ourselves wishing to utilise when retired and kids grown up, hence the thoughts around holding it.
The second property abroad is for family use only, so not attracting income. Upsizing was not on radar on the time. I suspect now it is most unhelpful in terms of leverage e.g lender limits on net 3.5-4.5 times salary, and net disposable income limitations (which vary from 38-49% depending what you read). Therefore I ask, how would banks account for the rental income from our current PPR in terms of cashflow, I gather some will not factor it at all, some do? if they do factor rental income, is it only a cashflow factor, or can it also assist in reducing the headline debt for loan to income ratio? There is also a small CGT consideration if we hold it.
That brings me to the retirement planning. I don't mind a certain amount of risk while young, as above that includes being fairly highly leveraged, so long as there is a clear plan and an exit strategy. I am thinking long-term, and not chasing yields in the here and now. In my mind, after upsizing, I would likely turn investment focus away from property and start considering trackers/equities, once rainy day fund rebuilt. In my mind I am thinking the younger we invest in property the better, avoiding mortgages in our 60s, and ideally earlier. I see mortgages as a way to force savings too. Is there better ways to look at all of this?