Age: 39
Spouse’s/Partner's age: 39
Annual gross income from employment or profession: 40k
Annual gross income of spouse: 45k basic with average overtime of 20k p.a. but often more. Also good prospects for advancement.
Type of employment: e.g. Civil Servant, self-employed
Me -Private Sector, Spouse Semi-State
In general are you:
(a) spending more than you earn, or
(b) saving? Not spending more than we earn but not saving as much as we should/could either
Rough estimate of value of home: Our home is valued at 350k approx
Amount outstanding on your mortgage: 139k
What interest rate are you paying? Tracker ecb + .75%
Rough estimate of value of home: Second Property value 200k
Amount outstanding on your mortgage: No mortgage
Other borrowings – car loans/personal loans etc
Personal Loan of 4k, no other borrowings
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 800 euro outstanding on BofScotland Visa card which I plan to pay off in full by mid June.
Savings and investments: Savings of 25k
Do you have a pension scheme? Yes, both in Occupational DB Schemes
Do you own any investment or other property? As above - investment property, value approx 200k, long term tenant paying 650 per month. No mortgage.
Ages of children: 7, 5, 2
Life insurance: None other than mortgage life cover and death in service benefits provided by our employers.
What specific question do you have or what issues are of concern to you?
Looking for some opinions/advice please on some major decisions we need to make. We have an opportunity to move from our current home, which we love but is starting to feel very small now that we're a family of five. The move will cost us in the region of 300k and is something that we've always talked about doing eventually, as it will bring us closer to my husbands family and will give us all the space we need. When the opportunity arose we originally decided we'd sell our second property to help finance the move, and hold on to the house we currently live in and hopefully rent it out. Selling our current home is not really an option that we'll consider unless absloutely necessary, for strong sentimental reasons mainly but in any case, as an investment we feel its a much better long term prospect due to its location. However we're now wondering if its possible to at all to make the move without having to sell anything. We have a great long term tenant in the rental property who we have a good relationship with. Our home is in a good location and we should be able to rent it out, or possibly rent it as a holiday let for the Summer months even. So it would mean taking out a mortgage of 300k, on top of the mortgage of 139k that we already have. Really its the idea of having that much debt that frightens us. Would we be mad to even consider it? And thats assuming that the banks would even lend us this amount. On the other hand though, I have a strong feeling that I'd like to hold on to our rental property if possible. Even though we'd be heavily borrowed, we'd still be a long way off being in negative equity (I hope), with borrowings of 439k and property worth approx 800k. And if we found the going too tough then we could always just go ahead and sell later on to bring our borrowings to a more manageable level. But if we hold on to it, and things work out then we still have that asset to use at a later date when and if we need it. As I said, selling our current home would be a total last resort, and our ultimate goal is to hold on to it and pass it on to our children. The second property was always our cushion, and something we figured would be there to finance our retirement, or the kids education or whatever we needed it for, and I feel that by selling it we're losing our cushion.
At this stage my head is spinning from trying to work through all of this and I'm sure I'm not necessarily seeing things as clearly as I should be. I'm hoping that some of the folks on AAM might be able to give me some perspective. Thanks in advance!
Spouse’s/Partner's age: 39
Annual gross income from employment or profession: 40k
Annual gross income of spouse: 45k basic with average overtime of 20k p.a. but often more. Also good prospects for advancement.
Type of employment: e.g. Civil Servant, self-employed
Me -Private Sector, Spouse Semi-State
In general are you:
(a) spending more than you earn, or
(b) saving? Not spending more than we earn but not saving as much as we should/could either
Rough estimate of value of home: Our home is valued at 350k approx
Amount outstanding on your mortgage: 139k
What interest rate are you paying? Tracker ecb + .75%
Rough estimate of value of home: Second Property value 200k
Amount outstanding on your mortgage: No mortgage
Other borrowings – car loans/personal loans etc
Personal Loan of 4k, no other borrowings
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 800 euro outstanding on BofScotland Visa card which I plan to pay off in full by mid June.
Savings and investments: Savings of 25k
Do you have a pension scheme? Yes, both in Occupational DB Schemes
Do you own any investment or other property? As above - investment property, value approx 200k, long term tenant paying 650 per month. No mortgage.
Ages of children: 7, 5, 2
Life insurance: None other than mortgage life cover and death in service benefits provided by our employers.
What specific question do you have or what issues are of concern to you?
Looking for some opinions/advice please on some major decisions we need to make. We have an opportunity to move from our current home, which we love but is starting to feel very small now that we're a family of five. The move will cost us in the region of 300k and is something that we've always talked about doing eventually, as it will bring us closer to my husbands family and will give us all the space we need. When the opportunity arose we originally decided we'd sell our second property to help finance the move, and hold on to the house we currently live in and hopefully rent it out. Selling our current home is not really an option that we'll consider unless absloutely necessary, for strong sentimental reasons mainly but in any case, as an investment we feel its a much better long term prospect due to its location. However we're now wondering if its possible to at all to make the move without having to sell anything. We have a great long term tenant in the rental property who we have a good relationship with. Our home is in a good location and we should be able to rent it out, or possibly rent it as a holiday let for the Summer months even. So it would mean taking out a mortgage of 300k, on top of the mortgage of 139k that we already have. Really its the idea of having that much debt that frightens us. Would we be mad to even consider it? And thats assuming that the banks would even lend us this amount. On the other hand though, I have a strong feeling that I'd like to hold on to our rental property if possible. Even though we'd be heavily borrowed, we'd still be a long way off being in negative equity (I hope), with borrowings of 439k and property worth approx 800k. And if we found the going too tough then we could always just go ahead and sell later on to bring our borrowings to a more manageable level. But if we hold on to it, and things work out then we still have that asset to use at a later date when and if we need it. As I said, selling our current home would be a total last resort, and our ultimate goal is to hold on to it and pass it on to our children. The second property was always our cushion, and something we figured would be there to finance our retirement, or the kids education or whatever we needed it for, and I feel that by selling it we're losing our cushion.
At this stage my head is spinning from trying to work through all of this and I'm sure I'm not necessarily seeing things as clearly as I should be. I'm hoping that some of the folks on AAM might be able to give me some perspective. Thanks in advance!