Hi Guys, A few years ago I created a thread in money makeover section and my situation has changed a good bit since then. I was hoping to pick your brain to see what you think of my situation - https://www.askaboutmoney.com/threads/buy-to-let-mortgage-advice.197693/#post-1461746
Gross Income - Monthly - Yearly
PAYE - 2750 – 33,000*
Rental 1 – 1,100 – 13,200
Rental 2 – 1,075 – 12,900
Rental 3 – 1,500 – 18,000
Rental 4 – 1,400 – 16,800
Rental 5 – 1,220 – 14,640
Rental 6 – 1,350 – 16,200
Rental 7 – 1,350 – 16,200
Rental 8 – 1,350 – 16,200
Total – 13,095 – 157,140
*exclusive of annual bonus of about 2,000 and BIK health insurance of 230e a month.
Partner PAYE - 1500 – 18,000
Current pension pot – 2,500
Annual Pension contribution – 6,500 +2,300(company contribution) = 8,800
Other Info:
Age: 29/28
I am working on increasing my own PAYE and potentially might be at about 40k in the next 2-3 years.
Generally speaking, my rentals are nearly all close to market rate. At a push I might be able to get an extra 500 per month across all of them but will not be increasing them unless a tenant leaves.
In general are you:
saving
Rough estimate of value of home – 300,000
Amount outstanding on your mortgage: 0
Other borrowings – car loans/personal loans etc - 0
Savings and investments: 10,000
The majority of these are interest only for another 3 years with the exception of rental 3.
Ages of children: n/a. When we do hopefully have children, there is a strong likely hood that my partner would go to part time reducing our wages and affordability.
Life insurance: Yes – Term life insurance for 30 years @700k
Upcoming large expenses:
1-3 Years – Marriage – circa 20k.
3-5 Years – Kids
3-5 Years – Family Car – circa 10-15k
5-8 Years – Family Home – circa 500k
Financial saving objectives:
EOY 2026 having savings of circa 160k @20k per year
EOY 2028 Pension Pot of circa 80k @4pc growth
I hope I was clear with my financial background. Let me know if any of it is unclear.
What specific question do you have or what issues are of concern to you?
1)Do you think my financial objective and upcoming large expenses are realistic and attainable and is 4pc growth for a pension too high or too low?
2) What are your thoughts on my cashflow, sustainability of debt level etc as rents are at all time highs and wont be like this forever.
3) Over the past few years, I have let my pension and saving go by the way side as I have been aggressively paying down my debt to get the majority of them to 50pc ltv. Right now. My main goal for the future is to save for our final home where it will be costing circa 500k. I would be hoping to refinance my existing portfolio along with saving of circa 160k to buy this final home without selling any of them including my current PPR which I would be hoping to turn into another rental. My current PPR has 0 Debt and could fetch current rent of circa 1500.My intention would be to maximise debt on rentals and minimize debt on PPR in the future to be as tax efficient as possible.
4)My main long term goal is prepping to buy our final home, with this in mind, another option im not too sure if I should go with is to overpay Rental 5 by 30k to bring it down to ltv of 50pc. This would enable me to have a gross saving of 1,800 per year or over 5 years a saving of 9k. Net saving of circa 4.5k is a lot however im not sure if im better leaving this money in my bank account as 30k would be a big dent in my savings for the next 5-8years.
5)I would like to invest in the stock market as well. This will not be happening in the near future as I do feel like I would be entering the market too late with current rates at all time highs. Its just food for thought for something I would like to do. If I was American, I would go with S&P500 or Wrath IRA and leave it there however the complexity of tax in Ireland puts me off them. I was considering investing around 1k per stock and just spreading my purchases across the biggest companies. It would be like a mini s&p 500 but without the extra complexity of having to deal with deemed disposal. – just wondering what peoples thoughts would be on this and what would you recommend for a lay investor. Considering that i will continue to invest in my pension which is invested into stocks and shares, would you also invest in them outside your pension also?
6) Thoughts on my overall financial position.
Gross Income - Monthly - Yearly
PAYE - 2750 – 33,000*
Rental 1 – 1,100 – 13,200
Rental 2 – 1,075 – 12,900
Rental 3 – 1,500 – 18,000
Rental 4 – 1,400 – 16,800
Rental 5 – 1,220 – 14,640
Rental 6 – 1,350 – 16,200
Rental 7 – 1,350 – 16,200
Rental 8 – 1,350 – 16,200
Total – 13,095 – 157,140
*exclusive of annual bonus of about 2,000 and BIK health insurance of 230e a month.
Partner PAYE - 1500 – 18,000
Current pension pot – 2,500
Annual Pension contribution – 6,500 +2,300(company contribution) = 8,800
Other Info:
Age: 29/28
I am working on increasing my own PAYE and potentially might be at about 40k in the next 2-3 years.
Generally speaking, my rentals are nearly all close to market rate. At a push I might be able to get an extra 500 per month across all of them but will not be increasing them unless a tenant leaves.
In general are you:
saving
Rough estimate of value of home – 300,000
Amount outstanding on your mortgage: 0
Other borrowings – car loans/personal loans etc - 0
Savings and investments: 10,000
The majority of these are interest only for another 3 years with the exception of rental 3.
Ages of children: n/a. When we do hopefully have children, there is a strong likely hood that my partner would go to part time reducing our wages and affordability.
Life insurance: Yes – Term life insurance for 30 years @700k
Upcoming large expenses:
1-3 Years – Marriage – circa 20k.
3-5 Years – Kids
3-5 Years – Family Car – circa 10-15k
5-8 Years – Family Home – circa 500k
Financial saving objectives:
EOY 2026 having savings of circa 160k @20k per year
EOY 2028 Pension Pot of circa 80k @4pc growth
I hope I was clear with my financial background. Let me know if any of it is unclear.
What specific question do you have or what issues are of concern to you?
1)Do you think my financial objective and upcoming large expenses are realistic and attainable and is 4pc growth for a pension too high or too low?
2) What are your thoughts on my cashflow, sustainability of debt level etc as rents are at all time highs and wont be like this forever.
3) Over the past few years, I have let my pension and saving go by the way side as I have been aggressively paying down my debt to get the majority of them to 50pc ltv. Right now. My main goal for the future is to save for our final home where it will be costing circa 500k. I would be hoping to refinance my existing portfolio along with saving of circa 160k to buy this final home without selling any of them including my current PPR which I would be hoping to turn into another rental. My current PPR has 0 Debt and could fetch current rent of circa 1500.My intention would be to maximise debt on rentals and minimize debt on PPR in the future to be as tax efficient as possible.
4)My main long term goal is prepping to buy our final home, with this in mind, another option im not too sure if I should go with is to overpay Rental 5 by 30k to bring it down to ltv of 50pc. This would enable me to have a gross saving of 1,800 per year or over 5 years a saving of 9k. Net saving of circa 4.5k is a lot however im not sure if im better leaving this money in my bank account as 30k would be a big dent in my savings for the next 5-8years.
5)I would like to invest in the stock market as well. This will not be happening in the near future as I do feel like I would be entering the market too late with current rates at all time highs. Its just food for thought for something I would like to do. If I was American, I would go with S&P500 or Wrath IRA and leave it there however the complexity of tax in Ireland puts me off them. I was considering investing around 1k per stock and just spreading my purchases across the biggest companies. It would be like a mini s&p 500 but without the extra complexity of having to deal with deemed disposal. – just wondering what peoples thoughts would be on this and what would you recommend for a lay investor. Considering that i will continue to invest in my pension which is invested into stocks and shares, would you also invest in them outside your pension also?
6) Thoughts on my overall financial position.
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