Hi all,
Our current situation below, thanks in advance!
Age: 26
Spouse’s/Partner's age: 26
Annual gross income from employment or profession: 80k + bonus + overtime
Annual gross income of spouse: 55k + bonus
Monthly take-home pay: self 4.4k, partner 3.3k (roughly varies with overtime)
Type of employment: Private sector
In general are you: Saving 3.2k per month between us
Rough estimate of value of home: n/a
Amount outstanding on your mortgage: n/a
Other borrowings – car loans/personal loans etc: n/a
Do you pay off your full credit card balance each month? n/a
If not, what is the balance on your credit card? n/a
Savings and investments: 170k cash (AIB online saver)
Do you have a pension scheme? Self: No, Partner: Yes, DB
Do you own any investment or other property? No
Ages of children: n/a
Life insurance: Yes both 3x earnings
What specific question do you have or what issues are of concern to you?
1. Property
We are currently working in Dublin and renting at a cost of 2.2k per month. Our original plan last year was to purchase property in Dublin around the 500k mark but Covid halted this. Our eventual plan was then to (next 7-10 years) buy land and build in our home county outside Dublin (but commutable to Dublin 3 days a week if needed).
Our eventual plan has not changed but due to Covid and the ability to now work from home (potentially), we are considering moving back to our home county sooner than expected (i.e. within next 5 years).
Fortunately, as we are in a strong cash position and could service a decent mortgage with our current rent payments, we also expect our wages to increase by 25% over the next 5 years.
We are currently trying to decide between:
a) continuing to rent in Dublin and keep saving for dream house in 5-7 years’ time;
b) buying up to the value of 550-625k in Dublin, save to purchase land and then selling property in Dublin to fund building;
c) buy apartment up to 400k and keep as long-term investment while continuing plan to self-build at home
Our budget to self-build between land and the build itself is between 600k-750k.
2. Savings and Investments
Up to now all our savings have been put aside for property however we are conscious we should probably be doing more with at least some of them. As a first step, I should get my pension sorted to utilise tax savings (note: employer doesn’t contribute to pension until age 30). Would we be better served focusing on property first or take a dual approach?
Any advice or opinions on our position would be very much appreciated.
Our current situation below, thanks in advance!
Age: 26
Spouse’s/Partner's age: 26
Annual gross income from employment or profession: 80k + bonus + overtime
Annual gross income of spouse: 55k + bonus
Monthly take-home pay: self 4.4k, partner 3.3k (roughly varies with overtime)
Type of employment: Private sector
In general are you: Saving 3.2k per month between us
Rough estimate of value of home: n/a
Amount outstanding on your mortgage: n/a
Other borrowings – car loans/personal loans etc: n/a
Do you pay off your full credit card balance each month? n/a
If not, what is the balance on your credit card? n/a
Savings and investments: 170k cash (AIB online saver)
Do you have a pension scheme? Self: No, Partner: Yes, DB
Do you own any investment or other property? No
Ages of children: n/a
Life insurance: Yes both 3x earnings
What specific question do you have or what issues are of concern to you?
1. Property
We are currently working in Dublin and renting at a cost of 2.2k per month. Our original plan last year was to purchase property in Dublin around the 500k mark but Covid halted this. Our eventual plan was then to (next 7-10 years) buy land and build in our home county outside Dublin (but commutable to Dublin 3 days a week if needed).
Our eventual plan has not changed but due to Covid and the ability to now work from home (potentially), we are considering moving back to our home county sooner than expected (i.e. within next 5 years).
Fortunately, as we are in a strong cash position and could service a decent mortgage with our current rent payments, we also expect our wages to increase by 25% over the next 5 years.
We are currently trying to decide between:
a) continuing to rent in Dublin and keep saving for dream house in 5-7 years’ time;
b) buying up to the value of 550-625k in Dublin, save to purchase land and then selling property in Dublin to fund building;
c) buy apartment up to 400k and keep as long-term investment while continuing plan to self-build at home
Our budget to self-build between land and the build itself is between 600k-750k.
2. Savings and Investments
Up to now all our savings have been put aside for property however we are conscious we should probably be doing more with at least some of them. As a first step, I should get my pension sorted to utilise tax savings (note: employer doesn’t contribute to pension until age 30). Would we be better served focusing on property first or take a dual approach?
Any advice or opinions on our position would be very much appreciated.