PByrne0101
Registered User
- Messages
- 3
Age: 38
Spouse’s/Partner's age: 42
Annual gross income from employment or profession: 85k+ bonus(~10K)
Annual gross income of spouse: 35K
Monthly take-home pay : 6.5K
Type of employment: employed
In general are you:
(a) breaking evening at the moment mainly due to refurbishing old house current house bit by bit
Home:
Rough estimate of value of home: 360K
Amount outstanding on your mortgage: 235K
What interest rate are you paying? 3%
Other borrowings – car loans/personal loans etc
car Loan: 13K - 280/month
Personal Loan: 10k - 200/month
Do you pay off your full credit card balance each month? Yes
Savings and investments: around e3K
Do you have a pension scheme? Yes
Do you own any investment or other property?
Rental Property (50% share):
Rough estimate of value of home: 280K
Amount outstanding on your mortgage: 220K
What interest rate are you paying? ecb+0.95%
Ages of children: 4 and 1 (creche fees 1.6K)
Life insurance: yes
Our house is an old Dublin 1930s house. Over the past 2 years we've spent about 30K in upgrading works. The house will need a lot of further rennovation and an extension if we are to stay in it long term. Although the street where we live is not child friendly, we are quiet happy with the location for work etc..
My spouse also owns a 50% share in another 1930s rental property nearby that has long term tenants in it. The property doesn't pay for itself since we need to pay out about 2-3K in tax each year. We have been toying with selling both properties and buying a slight bigger property nearby in a more family friendly area rather than extend and renovate the current property. Currently these properties sell for between 420-480K.
As I see it we have 3 options:
1. Keep both properties: Pros:rental income will provide a pension, tracker rate. Cons: rental hassle, yearly tax payout of 2-3K, will take longer to save for extension/refurbishment of current home, may need refurbishment in the future
2. Sell rental and stay in main home: Pros: no more yearly tax payout, pay off loans, easier to remortgage property to refurbish property. Cons: lose a tracker rate mortgage, lose future pension
3. Sell both properties: Pros: Buy a house in a quieter, more family friendly location, near better schools. Cons: Hassle of moving
I'm looking for advice from others. I think option 2 makes the most sense financially -however we both like the idea in living in a quieter estate. Have I missed any potential options?
Spouse’s/Partner's age: 42
Annual gross income from employment or profession: 85k+ bonus(~10K)
Annual gross income of spouse: 35K
Monthly take-home pay : 6.5K
Type of employment: employed
In general are you:
(a) breaking evening at the moment mainly due to refurbishing old house current house bit by bit
Home:
Rough estimate of value of home: 360K
Amount outstanding on your mortgage: 235K
What interest rate are you paying? 3%
Other borrowings – car loans/personal loans etc
car Loan: 13K - 280/month
Personal Loan: 10k - 200/month
Do you pay off your full credit card balance each month? Yes
Savings and investments: around e3K
Do you have a pension scheme? Yes
Do you own any investment or other property?
Rental Property (50% share):
Rough estimate of value of home: 280K
Amount outstanding on your mortgage: 220K
What interest rate are you paying? ecb+0.95%
Ages of children: 4 and 1 (creche fees 1.6K)
Life insurance: yes
Our house is an old Dublin 1930s house. Over the past 2 years we've spent about 30K in upgrading works. The house will need a lot of further rennovation and an extension if we are to stay in it long term. Although the street where we live is not child friendly, we are quiet happy with the location for work etc..
My spouse also owns a 50% share in another 1930s rental property nearby that has long term tenants in it. The property doesn't pay for itself since we need to pay out about 2-3K in tax each year. We have been toying with selling both properties and buying a slight bigger property nearby in a more family friendly area rather than extend and renovate the current property. Currently these properties sell for between 420-480K.
As I see it we have 3 options:
1. Keep both properties: Pros:rental income will provide a pension, tracker rate. Cons: rental hassle, yearly tax payout of 2-3K, will take longer to save for extension/refurbishment of current home, may need refurbishment in the future
2. Sell rental and stay in main home: Pros: no more yearly tax payout, pay off loans, easier to remortgage property to refurbish property. Cons: lose a tracker rate mortgage, lose future pension
3. Sell both properties: Pros: Buy a house in a quieter, more family friendly location, near better schools. Cons: Hassle of moving
I'm looking for advice from others. I think option 2 makes the most sense financially -however we both like the idea in living in a quieter estate. Have I missed any potential options?
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