Afternoon all,
Quick one, we rent a house for 1200 a month and would like to purchase in the same area for around 400k in a year or two if possible.
My question is - should we
a) Clear rental mortgage with our savings then save 1700 a month
b) Continue as we are to pay off rental mortgage at 500 a month and save 1200 a month
c) Clear rental mortgage @ 1700 a month (putting our 1200 savings towards the mortgage)
Age: 32
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: 50k
Annual gross income of spouse: 50k
Monthly take-home pay: ~5,500
Type of employment: Both private sector
Saving : 1200 a month
Rough estimate of value of rental property: 110k
Amount outstanding on your mortgage: 40k
What interest rate are you paying? 3.5%
Rent takes in a net 500 a month which is put towards the mortgage repayment.
Other borrowings – car loans/personal loans etc: None
Monthly expenses: rent of 1200 a month
Do you pay off your full credit card balance each month? Yes
Savings and investments: 40k cash
Do you have a pension scheme? Yes
Life insurance: Yes
Quick one, we rent a house for 1200 a month and would like to purchase in the same area for around 400k in a year or two if possible.
My question is - should we
a) Clear rental mortgage with our savings then save 1700 a month
b) Continue as we are to pay off rental mortgage at 500 a month and save 1200 a month
c) Clear rental mortgage @ 1700 a month (putting our 1200 savings towards the mortgage)
Age: 32
Spouse’s/Partner's age: 32
Annual gross income from employment or profession: 50k
Annual gross income of spouse: 50k
Monthly take-home pay: ~5,500
Type of employment: Both private sector
Saving : 1200 a month
Rough estimate of value of rental property: 110k
Amount outstanding on your mortgage: 40k
What interest rate are you paying? 3.5%
Rent takes in a net 500 a month which is put towards the mortgage repayment.
Other borrowings – car loans/personal loans etc: None
Monthly expenses: rent of 1200 a month
Do you pay off your full credit card balance each month? Yes
Savings and investments: 40k cash
Do you have a pension scheme? Yes
Life insurance: Yes