Age: 32
Partner's age: 35
Annual gross income from employment or profession: 33K
Annual gross income of spouse: c.45K
Type of employment: I'm permanent in a semi-state. Partner is self-employed.
In general are you spending more than you earn or are you saving? Saving
Rough estimate of value of home: 200K max
Amount outstanding on your mortgage: 200K
What interest rate are you paying? 1.1% tracker
Other borrowings: Car loan with CU €4,500. Recent purchase of more fuel efficient diesel. Loan term for 12 mths. Used €6k from savings towards car also.
Do you pay off your full credit card balance each month? Yes
Savings and investments:I save €330/month, partner saves slightly less, we have c.10K currently in high yield deposit accounts
Do you have a pension scheme? I have a fund with €13k from old employer. Current employer is in process of setting up new scheme which I will join and transfer fund into.
Do you own any investment or other property? Yes. €155K mortgage outstanding. 1.5% tracker. Rent pays mortgage. Currently worth max €150K.
Ages of children: None
Life insurance: Yes, for both mortgages.
What specific question do you have or what issues are of concern to you?
I am concerned about the investment property being in negative equity. It is a 2 bed townhouse so should have good longterm rental potential. If tenants move out we can still cover mortgage, but am scared of the liability. Should we brave it out and think long term, or cut our losses and use savings to cover shortfall created by negative equity? We would like to use spare money now to build up equity in our PPR, but would we be better off ploughing this into the investment property instead? Note, if tenants move out this "spare" money will be needed to cover mortgage. We acquired it as it was my PPR when we met, and not because we intended to become property investors/landlords. Would most likely have sold it on marriage had we not married and moved intogether after the downturn.
Partner's age: 35
Annual gross income from employment or profession: 33K
Annual gross income of spouse: c.45K
Type of employment: I'm permanent in a semi-state. Partner is self-employed.
In general are you spending more than you earn or are you saving? Saving
Rough estimate of value of home: 200K max
Amount outstanding on your mortgage: 200K
What interest rate are you paying? 1.1% tracker
Other borrowings: Car loan with CU €4,500. Recent purchase of more fuel efficient diesel. Loan term for 12 mths. Used €6k from savings towards car also.
Do you pay off your full credit card balance each month? Yes
Savings and investments:I save €330/month, partner saves slightly less, we have c.10K currently in high yield deposit accounts
Do you have a pension scheme? I have a fund with €13k from old employer. Current employer is in process of setting up new scheme which I will join and transfer fund into.
Do you own any investment or other property? Yes. €155K mortgage outstanding. 1.5% tracker. Rent pays mortgage. Currently worth max €150K.
Ages of children: None
Life insurance: Yes, for both mortgages.
What specific question do you have or what issues are of concern to you?
I am concerned about the investment property being in negative equity. It is a 2 bed townhouse so should have good longterm rental potential. If tenants move out we can still cover mortgage, but am scared of the liability. Should we brave it out and think long term, or cut our losses and use savings to cover shortfall created by negative equity? We would like to use spare money now to build up equity in our PPR, but would we be better off ploughing this into the investment property instead? Note, if tenants move out this "spare" money will be needed to cover mortgage. We acquired it as it was my PPR when we met, and not because we intended to become property investors/landlords. Would most likely have sold it on marriage had we not married and moved intogether after the downturn.