I had the same thoughts. Sell the PPR, clear the debt, and buy a 'more modest' 1m home, keep the investment property, and sleep a bit better at night.At least your home is worth 1.8 million, I was worried about that. Maybe you should sell that. Have you thougth about it?
We had it valued at €1.8M recently.
Sorry, I meant in around 3 years when we’ve the personal debt cleared and around €60,000 in an emergency savings fund. I would start overpaying the mortgage then with the aim of shortening the term by 10 years - I have looked at calculators on this. But I like the idea of having my pension fund, an emergency fund, defined benefit stuff, and an investment property. I am stressed now though.
Sell the investment property. A couple with your earnings/pensions/equity in property should not have so much unsecure debt. Personally I would pay my parents back first as I would be embarrassed owing them €100k that I used for a lavish refurbishment when my home is worth €1.7 million.
I would then take €500 and get myself some professional advice.
While I agree with your sentiments I suspect his parents would prefer he reduced his very costly debt first. They are probably worried about that and the spending.
The life insurance side of things is covered completely.
All of those bank/credit union loans have 8 years remaining; 7.5% on the bank ones and 8.5% on the credit union ones.
Selling our home doesn’t really make sense to us having put so much time, effort, and money into it.
I should point out that we were essentially defrauded to the tune of €100,000 by our builder, so that is relevant.
My worry is that the investment property is so good return-wise. It seems like I would be mad to sell it. I’ve thought about selling half of it to my Dad in exchange for the €100,000 plus some additional cash which I would use to clear the personal debts. That plus the €80,000 would leave us clear. Then build up €100,000 of savings and start attacking the home mortgage.
Income: 140K + 50K + 70K = 260K
Debts: 700 + 180 + 30 + 40 + 26 + 30 + 100 = ONE MILLION ONE HUNDRED AND SIX THOUSAND EUROS !!!!!!!!!!!!!!!!!
Assets:House? Investment: 170K
Possible cash: 100K + 80K = 180K
The first part of sorting financial mismanagement is being honest. Please fill in as much detail as you can and try and be as honest as necessary without revealing who you are. For starters I hope you are not using your real name.
There is some major problem going on here. Could be expensive tastes, outrageous holidays. And someone is very good at one thing. Accumilating debt. Top marks for that.
Positives are that it's a high earning couple. And this can be sorted I imagine with some serious talking and a proper effort to tackle the debt right now.
Investment is cheap, oddly, with Pepper, why so low. Probably performing well. But so much debt so it may have to be sold.
Maybe the home is worth a lot after all the renovations.
I'm amazed that a family loan was ever advanced.
Worst case scenario: Husband loses job. Presumably a high powered stressful one. Could also burn out.
My worry is that the investment property is so good return-wise. I’ve thought about selling half of it to my Dad in exchange for the €100,000 plus some additional cash which I would use to clear the personal debts. That plus the €80,000 would leave us clear. Then build up €100,000 of savings and start attacking the home mortgage.
Just on this point, and bear with me please.My worry is that the investment property is so good return-wise. It seems like I would be mad to sell it. I’ve thought about selling half of it to my Dad in exchange for the €100,000 plus some additional cash
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