Age: 36
Spouse age: 40
Income: 75 k
Spouse: 70 k
Type of employment: public sector and private sector employee
Save more than we spend
Value home: 500 k
Mortgage: 320 k
Interest rate: ECB + 0.6% (tracker), 18 years to run
No borrowings, pay off credit card each month (at least I do, can't vouch for spouse!)
Savings: 80k approx
Pension: yes
No other property or investment (unless almost worthless BoI shares count!)
Children: 4 and 2, might have one more go ( - :
Life insurance: Mortage protection insurance, spouse has life policy
Question:
Have been saving hard for the last 4 - 5 years with the intention of either moving up the property ladder, one of us staying at home with the munchkins for a year or two or starting a business. For variois reasons, we may not end up doing any of these things and will almost definitely not move. Want to leave 15k alone as a rainy day fund and put 25k into house (which won't add any value but will reduce energy costs and make it a more comfy and pleasant family home).
Question is what to do with the other 40 grand. Options are
1. Pay lump sum off mortgage capital
2. Buy an investment property
3. Leave it where it is (on deposit at 3.1%)
Other options are (but these obviously are more personal decisions)
4. Subsidise move to part time work for one of us, if poss
5. Subsidise one of us to start own business if poss
Any views on options 1 - 3? Childcare is a huge cost for us at the minute which will obviously reduce as time goes by and the munchkins go to school and mortgage repayments are still pretty high (6 years into the mortgage) but do-able.
Spouse age: 40
Income: 75 k
Spouse: 70 k
Type of employment: public sector and private sector employee
Save more than we spend
Value home: 500 k
Mortgage: 320 k
Interest rate: ECB + 0.6% (tracker), 18 years to run
No borrowings, pay off credit card each month (at least I do, can't vouch for spouse!)
Savings: 80k approx
Pension: yes
No other property or investment (unless almost worthless BoI shares count!)
Children: 4 and 2, might have one more go ( - :
Life insurance: Mortage protection insurance, spouse has life policy
Question:
Have been saving hard for the last 4 - 5 years with the intention of either moving up the property ladder, one of us staying at home with the munchkins for a year or two or starting a business. For variois reasons, we may not end up doing any of these things and will almost definitely not move. Want to leave 15k alone as a rainy day fund and put 25k into house (which won't add any value but will reduce energy costs and make it a more comfy and pleasant family home).
Question is what to do with the other 40 grand. Options are
1. Pay lump sum off mortgage capital
2. Buy an investment property
3. Leave it where it is (on deposit at 3.1%)
Other options are (but these obviously are more personal decisions)
4. Subsidise move to part time work for one of us, if poss
5. Subsidise one of us to start own business if poss
Any views on options 1 - 3? Childcare is a huge cost for us at the minute which will obviously reduce as time goes by and the munchkins go to school and mortgage repayments are still pretty high (6 years into the mortgage) but do-able.