Brendan Burgess
Founder
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I'm trading up to a bigger house and have put my existing home on the market. My friends say I'm crazy. They say I should hang on to the house as an investment, even if this means I'd have to borrow a lot more to buy the bigger house.
My home is on the market at €315k. It has a mortgage of €95k which costs €550 per month in repayments. I'm planning to spend about €470k on the bigger house and have savings of about €20k.
If I sell the first house, my new mortgage would be €210k or €1,220 a month.
If I keep the house, I'd have to borrow €450k, which would cost €2,620 a month. Against that I'd expect to get rent of about €1,000 a month, so my net outlay would be about €1,620 a month.
So for an extra €400 a month, my friends say I could keep both houses. That looks great on paper and I could probably afford the €400 a month. But is it worth going into debt to the tune of €430k?
My home is on the market at €315k. It has a mortgage of €95k which costs €550 per month in repayments. I'm planning to spend about €470k on the bigger house and have savings of about €20k.
If I sell the first house, my new mortgage would be €210k or €1,220 a month.
If I keep the house, I'd have to borrow €450k, which would cost €2,620 a month. Against that I'd expect to get rent of about €1,000 a month, so my net outlay would be about €1,620 a month.
So for an extra €400 a month, my friends say I could keep both houses. That looks great on paper and I could probably afford the €400 a month. But is it worth going into debt to the tune of €430k?