Hello
Starting process of looking at perhaps looking at houses next year, to buy in 2015 or 2016 and not sure how much to borrow - what is prudent, what is over-extending ourselves. Somer personal details:
Both 34 years old, no children yet, married
Both professionals in finance
Man on 72k pa and wife on 70k pa
Net joint income is about 7,300.
paying 1,200 per month in rent currently
have 40k saved for deposit
have another 40k rainy day savings (not to be used for house purchase or anything else)
no loans or other debts
Currently saving about 2,500 per month towards deposit.
Plan would be to buy in south dublin a house built in 40/50s - average 3 bed semi D with garage but in need of renovation.
Want to borrow for house and pay for renovation in cash.
What do you think is a prudent amount to borrow?
Was thinking of:
House to buy price 525k
borrow 483k
so online that would suggest mortgage of 2,400 per month which is about 33% of net monthly income (we both plan to work)
we have deposit saved already and over next year or two will have renovation month saved.
So if that far too much or prudent? dont want to borrow too much, want to have kids so will have creche fees hopefully one day also could have long-term sickness etc so want to be prudent but also the house we buy will mostly likely be forever, don't plan on trading up or anything.
Any advice? Crux is 7,300 net monthly income, 2,400 mortgage payment - too much?
Starting process of looking at perhaps looking at houses next year, to buy in 2015 or 2016 and not sure how much to borrow - what is prudent, what is over-extending ourselves. Somer personal details:
Both 34 years old, no children yet, married
Both professionals in finance
Man on 72k pa and wife on 70k pa
Net joint income is about 7,300.
paying 1,200 per month in rent currently
have 40k saved for deposit
have another 40k rainy day savings (not to be used for house purchase or anything else)
no loans or other debts
Currently saving about 2,500 per month towards deposit.
Plan would be to buy in south dublin a house built in 40/50s - average 3 bed semi D with garage but in need of renovation.
Want to borrow for house and pay for renovation in cash.
What do you think is a prudent amount to borrow?
Was thinking of:
House to buy price 525k
borrow 483k
so online that would suggest mortgage of 2,400 per month which is about 33% of net monthly income (we both plan to work)
we have deposit saved already and over next year or two will have renovation month saved.
So if that far too much or prudent? dont want to borrow too much, want to have kids so will have creche fees hopefully one day also could have long-term sickness etc so want to be prudent but also the house we buy will mostly likely be forever, don't plan on trading up or anything.
Any advice? Crux is 7,300 net monthly income, 2,400 mortgage payment - too much?