Buying property with 53% down, should i sell company stock to add to deposit?

M

matrix

Registered User
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16
Hi Folks,

Age: 33
Children: 1 (4 yo)
Income: 88k (78k base, 10k bonus)
Monthly take-home pay: 3794e (After pension and employer stock purchase program)
Debt: None
Do you own any investment or other property? No

Property purchase: 305k

Deposit: 162k
Company shares: €40k

I'm about to purchase a property for 305k with 162k down, i do have 40k in company shares which i think may have the potential to go up quite a bit long term so i'm wondering if i should sell them and add the proceeds to the deposit? I am enrolled in my company ESPP at 15% so i would still be purchasing company stock regardless.

Atm my mortgage would be 524e pm, after tax i'm not sure selling the stock would be worth it to try reduce the monthly payment.

Any advice is much appreciated.

Thank you.
 
The company stock may or may not go up who knows.mortgage interest rates are going up.depending on the company stocks increased,if at all you would be saving on paying interest on the mortgage.
So I’d off load them and get the guaranteed saving on mortgage first.
 
Forget about the mortgage for the moment.

Your income comes from the company.
A big chunk of your wealth is tied up in the company.
You will be adding to that by continuously buying more shares.

Whether or not you buy a home, you should sell whatever shares you can sell tax efficiently so that you can diversify away the risk of being dependent on one company.

Max your pension and then pay any balance off the mortgage.

Brendan
 
Good advice as always, glad to have asked in this forum.

One more question as i couldn't really find an answer for this, it may be going off topic a bit but at the end of the fixed mortgage term e.g 4 years, am i able to pay off a lump sum to pay off the rest of the mortgage or is it still restricted to the annual cap the mortgage lender implements (mine is 10% per year without fees).

Thanks folks
 
Hi matrix

1) At the end of the fixed rate period, you can pay off any or all of your mortgage without penalty.
2) During the fixed rate period, you can pay off any or all of the mortgage at any time. There may be an early break fee, but it's usually small. So there is no need to wait until the 4 years is up if you have the money.
3) Some lenders, such as yours, allow you to pay off a percentage of the mortgage each year without penalty.

Brendan
 
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