Age: 35
Spouse Age: 38
Annual Gross Income: 92k
Bonus: 15%
Spouse Annual Gross income: 35k
Monthly Takehome Pay: 3700
Partner take home Pay: 2500
Employment (both): Private, full time. Both quite stable.
My Monthly Savings: 1500 - 2000
Partner Monthly Savings: 200-500
Home at last valuation: 445k
Original Mortgage: 305k
Outstanding Mortgage: 252k
Mortgage per month: roughly 1100
Interest Rate: 2.6 (5 year fixed)
Other loans/borrowings: none
Major bills: Creche: 1k pm
Credit cards paid off in full each month.
Savings: 65k
Investments: none
Pension: Yes, 15% of gross salary (roughly 1150 pm)
Life Insurance: yes
Number of Children: 1
Age of Children: 3
Question:
We want to move to a different area, but to do this will require taking out a much larger mortgage.
We are adverse to large amounts of debt, but what we can see from our social circle is that lots of people appear to be borrowing much more than we did. We want to see if we are overly adverse to debt and if we can reasonably take on a little more to allow us to move to an area where property is more expensive.
My calculations say:
Based on the 3.5x rule, a reasonable mortgage would be up to 445k.
if we sell for estimated value of 445k, this leaves 193k after clearing the mortgage.
Along with half our savings, this gives 223k.
I dont know how this fits in with borrowing patterns in Dublin. Average mortgage is reported to be around 300k, but I would like to know the median, as a huge amount of houses are 500+, and they are being bought by someone & my understanding is our combined salary puts us well above average for Dublin.
Could we potentially purchase in the 500-600k price bracket without overleveraging ourselves?
Spouse Age: 38
Annual Gross Income: 92k
Bonus: 15%
Spouse Annual Gross income: 35k
Monthly Takehome Pay: 3700
Partner take home Pay: 2500
Employment (both): Private, full time. Both quite stable.
My Monthly Savings: 1500 - 2000
Partner Monthly Savings: 200-500
Home at last valuation: 445k
Original Mortgage: 305k
Outstanding Mortgage: 252k
Mortgage per month: roughly 1100
Interest Rate: 2.6 (5 year fixed)
Other loans/borrowings: none
Major bills: Creche: 1k pm
Credit cards paid off in full each month.
Savings: 65k
Investments: none
Pension: Yes, 15% of gross salary (roughly 1150 pm)
Life Insurance: yes
Number of Children: 1
Age of Children: 3
Question:
We want to move to a different area, but to do this will require taking out a much larger mortgage.
We are adverse to large amounts of debt, but what we can see from our social circle is that lots of people appear to be borrowing much more than we did. We want to see if we are overly adverse to debt and if we can reasonably take on a little more to allow us to move to an area where property is more expensive.
My calculations say:
Based on the 3.5x rule, a reasonable mortgage would be up to 445k.
if we sell for estimated value of 445k, this leaves 193k after clearing the mortgage.
Along with half our savings, this gives 223k.
I dont know how this fits in with borrowing patterns in Dublin. Average mortgage is reported to be around 300k, but I would like to know the median, as a huge amount of houses are 500+, and they are being bought by someone & my understanding is our combined salary puts us well above average for Dublin.
Could we potentially purchase in the 500-600k price bracket without overleveraging ourselves?