snowdragon
Registered User
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- 1
Hello All,
Below is my financial situation
Age: 38
Spouse’s/Partner's age: 34
Annual gross income from employment or profession: €86K
Annual gross income of spouse: None- Stay at home mom
Monthly take-home pay - €4200/month
Type of employment: e.g. Civil Servant, self-employed - Private MNC
In general are you: Saving
(a) spending more than you earn, or
(b) saving? Yes - appx €1800/month
Rough estimate of value of home -Renting (€850/month)
Amount outstanding on your mortgage:
What interest rate are you paying?
Other borrowings – car loans/personal loans etc - No loans
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments:
Total ~€160K (Appx €50K in Shares, ~€110K in various bank savings acc)
Do you have a pension scheme? Yes, Define benefits with company (€41K/year on retirement), Contributing AVC (DC), Total maxed at 20%
Do you own any investment or other property? No
Ages of children: 2, second due in few weeks
Life insurance: None (Company in service death benefit of €340K)
Background-
We are still renting but with work we may need to move out of Ireland next year for 4-5 years. We were thinking of buying family home but we have put on hold until we are back.
We have money in savings account earning very small interest. So I have been looking at two investment properties (~50km from Dublin). Plan would be to rent out via county council on long term social lease for 10-15 years which would give fixed returns (albeit 80% of market rent but i will not have the headache of managing the property). My expectations is not capital appreciation on the property but at least give better return over next 10-15 yrs.
I have investment mortgage approval with UB @ 4.5%
Property 1- house -
Asking price €115K, expected rent €650/month
I could try to get a cash deal for €105 to 110K
Property 2- Apartment -
Asking price €140K, expected rent €950/month (excluding €500/year management fees)
I can pay €70K cash and €70K in mortgage over 25 years (€400/month repayments)
I expect to continue saving €15-18K/year for next 4-5 years
So questions are -
1. Does it make sense in purchasing buy to let investment property?
2. Which property should I go for - Cash buy Vs Mortgage
3. Should I invest in my own name or joint with wife
4. What impact buy to let property would have on a first time buyer status, if any
Apologies for a long post but want to proved as much details as possible to get a meaningful discussion and advice.
Thanks for reading.
Below is my financial situation
Age: 38
Spouse’s/Partner's age: 34
Annual gross income from employment or profession: €86K
Annual gross income of spouse: None- Stay at home mom
Monthly take-home pay - €4200/month
Type of employment: e.g. Civil Servant, self-employed - Private MNC
In general are you: Saving
(a) spending more than you earn, or
(b) saving? Yes - appx €1800/month
Rough estimate of value of home -Renting (€850/month)
Amount outstanding on your mortgage:
What interest rate are you paying?
Other borrowings – car loans/personal loans etc - No loans
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?
Savings and investments:
Total ~€160K (Appx €50K in Shares, ~€110K in various bank savings acc)
Do you have a pension scheme? Yes, Define benefits with company (€41K/year on retirement), Contributing AVC (DC), Total maxed at 20%
Do you own any investment or other property? No
Ages of children: 2, second due in few weeks
Life insurance: None (Company in service death benefit of €340K)
Background-
We are still renting but with work we may need to move out of Ireland next year for 4-5 years. We were thinking of buying family home but we have put on hold until we are back.
We have money in savings account earning very small interest. So I have been looking at two investment properties (~50km from Dublin). Plan would be to rent out via county council on long term social lease for 10-15 years which would give fixed returns (albeit 80% of market rent but i will not have the headache of managing the property). My expectations is not capital appreciation on the property but at least give better return over next 10-15 yrs.
I have investment mortgage approval with UB @ 4.5%
Property 1- house -
Asking price €115K, expected rent €650/month
I could try to get a cash deal for €105 to 110K
Property 2- Apartment -
Asking price €140K, expected rent €950/month (excluding €500/year management fees)
I can pay €70K cash and €70K in mortgage over 25 years (€400/month repayments)
I expect to continue saving €15-18K/year for next 4-5 years
So questions are -
1. Does it make sense in purchasing buy to let investment property?
2. Which property should I go for - Cash buy Vs Mortgage
3. Should I invest in my own name or joint with wife
4. What impact buy to let property would have on a first time buyer status, if any
Apologies for a long post but want to proved as much details as possible to get a meaningful discussion and advice.
Thanks for reading.