Hi Giulia
You don't face any immediate decision do you?
You are not in a position to trade up just at the moment, so don't worry about it.
You are managing your finances fairly well.
You have a mortgage of 310k and 48k in savings. If you can pay this off your mortgage without penalty, you should do so.
I don't think you will be in a position to retain the apartment as an investment and buy a family home. If you think that you might be able to do so, then you might hold off paying down the mortgage. This is because you are better off having as high a mortgage as possible on an investment property.
I really would not worry about what happens to your daughter in 20 years. Surviving the present and the next few turbulent years with a decent financial base should be everyone's priority.
Brendan
Employment
Spouse: recruitment consultant
Spouse 44k+bonus (another 30k now before it was higher)
If house prices are falling, you are saving 2k per month and you are not planning on selling your apartment - where does the problem lie?
In your hypothyetical scenario -
in 5 years your savings will have increased - the price of houses decreases and the apartment is irrelevant as you will keep/rent out.
I think this is a bit of a simplistic view. If (as you assume here) house prices continue to decrease over the next five years, the apartment will move further and further into negative equity. I would assume that having a mortgage on an apartment in negative equity will have an impact on the amount a bank would offer as a new additional mortgage?
Worrier as I am, I wouldn't add a mortgage to another one. that would kill me
All indicators point to the fact that you will be able toThats true Giuila, thought about Steves post afterwards and I was thinking I would love it if I could get a nice apartment for 80k in a few years time!
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