C
curios
Guest
Hi All,
I'm in a bit of a confused state at the moment and would really appreciate some guidance. My fiance and I are looking to buy a house in the next year or so. Our current situation is as follows:
Partner:
Salary:
approx €100k per year before tax
Debt:
Mortgage €155k 1 bed apt, tracker mortgage approx €600 per month
Car loan: €20k approx €530 per month for next 4 years
Savings:
Approx €7k
Me:
Savings:
Approx €155k
Income:
Recently Self employed approx €150 per week
Debt:
Nil
My query is whether it makes good financial sense to pay off my partners mortgage and for us both to pay off the car loan?
The house we want to buy will be one we want to keep long term so we would be looking to spend max €450k.
If I pay off the debt, then I will have nothing to contribute towards the purchase of the new property however I will have an asset in the apartment and a rental income approx €800 per month. So, an income of roughly €45k over 5 years plus then if I wanted to sell it, I could put a lump sum of the new house. Hopefully, getting back most of what I put in although I know I can't count on that.
My partner will also then be freed up €600 a month which can be put towards savings or the mortgage of the new house. If we could manage to pay off the car loan too through savings in the next few months then it would mean an extra €1200 per month towards new mortgage.
I realise then that we would have to save to get a deposit for the new house which could be tricky, by that I mean take a good while.
But our position then would be that I would have an asset, a rental income of €800 a month. My partner would have a salary of €100k a year approx and neither of us would have any debt. Well, until we got the new 450k mortgage!
It's a bit of a complicated scenario and I'm not sure what would be the best move: the above scenario or use my money towards the new house and get a mortgage for the balance 300k.
Any opinions or suggestions would be much appreciated!
Thanks
I'm in a bit of a confused state at the moment and would really appreciate some guidance. My fiance and I are looking to buy a house in the next year or so. Our current situation is as follows:
Partner:
Salary:
approx €100k per year before tax
Debt:
Mortgage €155k 1 bed apt, tracker mortgage approx €600 per month
Car loan: €20k approx €530 per month for next 4 years
Savings:
Approx €7k
Me:
Savings:
Approx €155k
Income:
Recently Self employed approx €150 per week
Debt:
Nil
My query is whether it makes good financial sense to pay off my partners mortgage and for us both to pay off the car loan?
The house we want to buy will be one we want to keep long term so we would be looking to spend max €450k.
If I pay off the debt, then I will have nothing to contribute towards the purchase of the new property however I will have an asset in the apartment and a rental income approx €800 per month. So, an income of roughly €45k over 5 years plus then if I wanted to sell it, I could put a lump sum of the new house. Hopefully, getting back most of what I put in although I know I can't count on that.
My partner will also then be freed up €600 a month which can be put towards savings or the mortgage of the new house. If we could manage to pay off the car loan too through savings in the next few months then it would mean an extra €1200 per month towards new mortgage.
I realise then that we would have to save to get a deposit for the new house which could be tricky, by that I mean take a good while.
But our position then would be that I would have an asset, a rental income of €800 a month. My partner would have a salary of €100k a year approx and neither of us would have any debt. Well, until we got the new 450k mortgage!
It's a bit of a complicated scenario and I'm not sure what would be the best move: the above scenario or use my money towards the new house and get a mortgage for the balance 300k.
Any opinions or suggestions would be much appreciated!
Thanks