Hi
Before I start, happy New Year to all askaboutmoney forum members/browsers!
I'm a first time poster and I'm in a fortunate position financially but unsure of what to do from a financial view point going forward. My wife is of a different opinion to me but maybe I can throw the scenario out to members for their views:
We own our own house; we have 2 investment properties both on tracker mortgages with Ulster Bank. Property 1 has a mortgage of €300k and is worth approx €400k. We're now paying the principal/interest on this property @€1,500/month.
Property 2 has a mortgage of €585k and is worth approx €415k. We're paying interest only at moment on this property for next 5 years @€570/month. Total outgoing therefore is approx €2k/month. Rental income on both properties is €3,100/month.
Salary wise myself and my wife come out with €4k/month after taxes deducted. We have €180k in a Nationwideuk deposit account which now only gives us €170/month in interest. We will change this possibly to Rabodirect if we don't invest same in coming months.
I realise we're in a very good position financially but I'm worried as to how that will change once we go onto principal/interest on our 2nd property in 5 years time.
My wife feels we should now buy another investment property and sell it in 5 years time and by that time (if the housing market keeps improving), we should have enough to possibly pay off investment property number 1.
I feel I'd rather pay off possibly €160k on property 1 and increase the monthly payments by €1,000 and keep €20k on account for a rainy day fund (kids college fees, etc.). I don't particularly like the idea of buying a third investment property and all that entails (more property taxes/more tenants to deal with, etc.) and feel my idea works fine as we still would get appreciation on investment property 1 over the 5 year period and could possibly be close enough to actually paying off the property if we increase the monthly payments.
We have no other credit card/car payment outlay.
I'm 51 and my wife is 50. I'm putting €1,000/month into an AVC and am also putting 6% salary into company pension and have been working with my company for 12 years.
Anyway, sorry for the long thread but would appreciate anyone's input into the above and perhaps their views on what they feel would be the prudent thing to do here. Just don't want to go wrong at this point in life.
Many thanks!
Before I start, happy New Year to all askaboutmoney forum members/browsers!
I'm a first time poster and I'm in a fortunate position financially but unsure of what to do from a financial view point going forward. My wife is of a different opinion to me but maybe I can throw the scenario out to members for their views:
We own our own house; we have 2 investment properties both on tracker mortgages with Ulster Bank. Property 1 has a mortgage of €300k and is worth approx €400k. We're now paying the principal/interest on this property @€1,500/month.
Property 2 has a mortgage of €585k and is worth approx €415k. We're paying interest only at moment on this property for next 5 years @€570/month. Total outgoing therefore is approx €2k/month. Rental income on both properties is €3,100/month.
Salary wise myself and my wife come out with €4k/month after taxes deducted. We have €180k in a Nationwideuk deposit account which now only gives us €170/month in interest. We will change this possibly to Rabodirect if we don't invest same in coming months.
I realise we're in a very good position financially but I'm worried as to how that will change once we go onto principal/interest on our 2nd property in 5 years time.
My wife feels we should now buy another investment property and sell it in 5 years time and by that time (if the housing market keeps improving), we should have enough to possibly pay off investment property number 1.
I feel I'd rather pay off possibly €160k on property 1 and increase the monthly payments by €1,000 and keep €20k on account for a rainy day fund (kids college fees, etc.). I don't particularly like the idea of buying a third investment property and all that entails (more property taxes/more tenants to deal with, etc.) and feel my idea works fine as we still would get appreciation on investment property 1 over the 5 year period and could possibly be close enough to actually paying off the property if we increase the monthly payments.
We have no other credit card/car payment outlay.
I'm 51 and my wife is 50. I'm putting €1,000/month into an AVC and am also putting 6% salary into company pension and have been working with my company for 12 years.
Anyway, sorry for the long thread but would appreciate anyone's input into the above and perhaps their views on what they feel would be the prudent thing to do here. Just don't want to go wrong at this point in life.
Many thanks!