# Second Home Options



## StarStar (19 Jun 2008)

*Age:*
27
*Spouse’s/Partner's age:*
28

*Annual gross income from employment or profession:*
E40,000
*Annual gross income spouse:*
E45,000

*Type of employment:*
Both Public sector employees

*Expenditure pattern:*
She is a saver. I am not. She will be getting control of the majority of my finances next year to the benefit of both of us.

*Rough estimate of value of home*
E325,000
*Mortgage on home*
E177,000 - we've been paying our mortgage for 26 months now. (about 980Pm)
*Mortgage provider:*
PTSB
*Type of mortgage: Tracker, interest only, fixed rate*
Tracker
*Interest rate*
4.95% .

*Other borrowings – car loans/personal loans etc*
(Mine)Car Loan: €9000 (450 per month) Credit Union loan at 6.5%
(Mine)Credit Card MBNA €2500 (Currently working on paying this off)

*Do you pay off your full credit card balance each month?*
No-but pay what I can afford which varies wildly from month to month.

*Savings and investments:*
Me: 
€5000 in credit union (currently putting away 450 per month for wedding next year)
Her:
€4000 in savings account (also putting away about 450 per month for wedding.)
€2500 in Rabo investment accounts.

*Do you have a pension scheme?*
Yes, we are both paying into government pension schemes.

*Do you own any investment or other property?*
No.

*Ages of children:*
None.

*Life insurance:*
Yes.

*What specific question do you have or what issues are of concern to you?*

Right, we are getting married next year and will probably end up paying circa 17K for the wedding.  She has just bought a new car with about 12K of her savings.
We currently own a 4 bed and could conservatively get rent of €1000 pm if we were to move out.
We have a site in her home town and are thinking of building on it. This process should begin after the wedding.
I should have all my debts paid of in the middle of next year but am working to push this forward.
Would people agree that based on our current situation continuing we would be in a decent position in 15 months to begin servicing another mortgage or 250-300 for our primary residential home on the site?

Thanks for any advise, if more information is needed please let me know.


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## deebnm (19 Jun 2008)

When are you getting married?

17k budgeted is low when you compare that average weddings in Ireland cost an estimated 30k.


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## StarStar (19 Jun 2008)

Getting married next July.
Her parents are providing the extra 13K.
StarStar


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## Jonathan.OB (20 Jun 2008)

What interest are you paying on the Credit Card. I would suggest use some savings to clear this straight off, as you are losing out due to the difference in interest repayments??......................................Would you really need a mortgage of €250-€300k to build?...........j


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## StarStar (20 Jun 2008)

Jonathan.OB said:


> What interest are you paying on the Credit Card. I would suggest use some savings to clear this straight off, as you are losing out due to the difference in interest repayments??......................................Would you really need a mortgage of €250-€300k to build?...........j


Hi Jonathan,
Current rate on the credit card is an introductory one so its low.

I would think 250-300 to be the cost of fully building and fitting out the house we are currently looking at building. It may come in slightly cheaper but I doubt it.
StarStar


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## QED (20 Jun 2008)

Did you pay for your house with savings? If so how did you manage to save so much?


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## StarStar (20 Jun 2008)

QED said:


> Did you pay for your house with savings? If so how did you manage to save so much?


Fiance was left some money years ago and it was invested. We both also had some savings at the time.


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## QED (20 Jun 2008)

I made my comment because me and my fiance have approx same value house, same total income, same personal loans etc. but we have mortgage closer to 295k and not much in the line of savings.

The mortgage total doesn't bother me because repayments are not a problem and we have no plans to move (just in 3 months). I'm just a bit jealous I suppose.

I think you are lucky enough that money should not be a major part of this decision. Just consider quality of life, future plans etc...


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## StarStar (20 Jun 2008)

QED said:


> I made my comment because me and my fiance have approx same value house, same total income, same personal loans etc. but we have mortgage closer to 295k and not much in the line of savings.
> 
> The mortgage total doesn't bother me because repayments are not a problem and we have no plans to move (just in 3 months). I'm just a bit jealous I suppose.
> 
> I think you are lucky enough that money should not be a major part of this decision. Just consider quality of life, future plans etc...


While our current location is fine, in the future we'd like to live in a more rural setting for the quality of life aspect.
Hopefully things work out for us as we arent too badly off.
Star Star


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