L
larrymo
Guest
Hi all
Just wondering if anyone has any advice about the best way forward regarding my financial situation. Ideally I would like to be in a position to give up work soon and live on the monthly income of my investments. Below is short synopsis of present financial position:
We have a house on a large corner site and owe Euro 88K (principal and interest mortgage) on it. We also released equity from this house of Euro 197K (interest only loan) to fund an investment property.
We have just received planning permission to build a detached house on our corner site. This will cost us approx Euro 280K.
We own one investment property (rented out at Euro 1,500/month) and owe Euro 324K on this property (valued at approx Euro 680K).
Between stocks/incentive savings maturing, we have cash reserve of approx Euro 170K.
So between the jigs and reels, by September when we hope to have the new build done, we will have three houses with outstanding loans (all interest only) at approx Euro 850K and equity of three houses at approx Euro 2.2 million.
If we rent both investment properties out at Euro 1,500/month (and live in the new house) this will pay for the outstanding loans of Euro 850K (approx Euro 3,000/month) and I will be essentially mortgage free. We have looked around at the rate the different banks will give and First Active have indicated they would offer 4.5% on the interest only loan over 26 years....is this a decent rate?
What I then have is Euro 170K in cash that I need to get a monthly income from that would be reasonably secure. Anyone any ideas in that regard?
Sorry for the long-winded thread. Would anyone do anything differently than what I have planned above?
Cheers and thanks for any input!
Larrymo
Just wondering if anyone has any advice about the best way forward regarding my financial situation. Ideally I would like to be in a position to give up work soon and live on the monthly income of my investments. Below is short synopsis of present financial position:
We have a house on a large corner site and owe Euro 88K (principal and interest mortgage) on it. We also released equity from this house of Euro 197K (interest only loan) to fund an investment property.
We have just received planning permission to build a detached house on our corner site. This will cost us approx Euro 280K.
We own one investment property (rented out at Euro 1,500/month) and owe Euro 324K on this property (valued at approx Euro 680K).
Between stocks/incentive savings maturing, we have cash reserve of approx Euro 170K.
So between the jigs and reels, by September when we hope to have the new build done, we will have three houses with outstanding loans (all interest only) at approx Euro 850K and equity of three houses at approx Euro 2.2 million.
If we rent both investment properties out at Euro 1,500/month (and live in the new house) this will pay for the outstanding loans of Euro 850K (approx Euro 3,000/month) and I will be essentially mortgage free. We have looked around at the rate the different banks will give and First Active have indicated they would offer 4.5% on the interest only loan over 26 years....is this a decent rate?
What I then have is Euro 170K in cash that I need to get a monthly income from that would be reasonably secure. Anyone any ideas in that regard?
Sorry for the long-winded thread. Would anyone do anything differently than what I have planned above?
Cheers and thanks for any input!
Larrymo