I think I can probably guess what the answer to my question will be, but I wanted to sense check with this forum.
Ages: Both 36
Annual gross income from employment or profession: €81,500; Spouse ~€60,000 (It's a daily rate but annual contract)
Monthly take-home pay: €4145; Spouse ~€3150
Type of employment: Private sector; Private sector, annual contract
In general are you:
(b) saving - €2,000 jointly assuming this will be used for a house when we trade up, I'm saving another €1000 into a rainy day fund
Rough estimate of value of home: €380k
Amount outstanding on your mortgage: Nothing - the apartment was inherited. We own it in full
What interest rate are you paying? -
Other borrowings – car loans/personal loans etc: Car loan, costs €200/month
Do you pay off your full credit card balance each month? Yes
Savings and investments: €90k including rainy day fund
Do you have a pension scheme? Yes, not matched by company. I put 10% of my salary in; Spouse does not
Do you own any investment or other property? No
Ages of children: No kids yet - possibly one in the future.
Life insurance: Yes, via my work
What specific question do you have or what issues are of concern to you?
We want to trade up to a larger home. We currently own and live in a nice apartment in Dublin docklands area but we want more space, especially since Covid we're both wfh and I will likely have the option to do this part time going forward even after this is all over. Apartment is valued currently at ~€380k, and would likely achieve €2000/month in rent.
As we are in a solid position with very little debt, we don't want to borrow to the max. Our options are:
a) sell up, borrow about €200k and have a total budget to spend on a new house of €650k. This would get us, if not a forever home, a very nice home that would be suitable for 10-15 years in our 'perfect location'.
b) Hang onto the apartment & rent it out. Buy a cheaper home in a nice commuter town near one side of the family (so, longer commutes but handy family support) borrowing about €340k, using the apartment income to service some of the mortgage.
What should we do?
Ages: Both 36
Annual gross income from employment or profession: €81,500; Spouse ~€60,000 (It's a daily rate but annual contract)
Monthly take-home pay: €4145; Spouse ~€3150
Type of employment: Private sector; Private sector, annual contract
In general are you:
(b) saving - €2,000 jointly assuming this will be used for a house when we trade up, I'm saving another €1000 into a rainy day fund
Rough estimate of value of home: €380k
Amount outstanding on your mortgage: Nothing - the apartment was inherited. We own it in full
What interest rate are you paying? -
Other borrowings – car loans/personal loans etc: Car loan, costs €200/month
Do you pay off your full credit card balance each month? Yes
Savings and investments: €90k including rainy day fund
Do you have a pension scheme? Yes, not matched by company. I put 10% of my salary in; Spouse does not
Do you own any investment or other property? No
Ages of children: No kids yet - possibly one in the future.
Life insurance: Yes, via my work
What specific question do you have or what issues are of concern to you?
We want to trade up to a larger home. We currently own and live in a nice apartment in Dublin docklands area but we want more space, especially since Covid we're both wfh and I will likely have the option to do this part time going forward even after this is all over. Apartment is valued currently at ~€380k, and would likely achieve €2000/month in rent.
As we are in a solid position with very little debt, we don't want to borrow to the max. Our options are:
a) sell up, borrow about €200k and have a total budget to spend on a new house of €650k. This would get us, if not a forever home, a very nice home that would be suitable for 10-15 years in our 'perfect location'.
b) Hang onto the apartment & rent it out. Buy a cheaper home in a nice commuter town near one side of the family (so, longer commutes but handy family support) borrowing about €340k, using the apartment income to service some of the mortgage.
What should we do?