Sorry, yet another sell vs. wait query.
We own a house in Galway, with details as follows:
The negative equity mortgage calculator on the PTSB website site suggests that (obvioulsy do not know if we could get approval yet) we could borrow 340k over 25 years if we put in approx 100k (which we have saved) - the repayment would be about €1900/month.
So are our choices as follows:
1. Status quo - pump in 2065/m for, say, 8 years = total 198240, rent during that perido then sell to clear the mortgage, go get another house, put in 100-120k, resulting in a possible 1800/m for 17 years that we would be eligible for at that stage AND have to wait in rental while our kids grow up (first world problem, I know). That scenario will cost 198240+367200 = 565k
The only way option 1 cost would reduce is if we make a 'profit' above what we owe the bank in 8 years.
2. Sell now + move tracker = 1900/m for 25 years = 570k
Am I completely mad? I'm definitely confused. Any comment or advice is greatly appreciated.
We own a house in Galway, with details as follows:
- 3-bed, not a great location on east side, bought 2006, rented out and getting net €615/month
- €300k, PTSB 100% 35 year tracker mortgage, no deposit so none of our own money in it
- Tracker currently at 2.3% incld. ECB
- Monthly mortgage is €1080
- Balance today is €254k
- Approximate market value today: €130-140k
- We pay €1600/m on rental of another place
- Out total accommodation costs are therefore 1600+465 = 2065/m
- We are both 40 in the next 4 months and have 4 kids, 7 months up to 7 years
- I have an engineering job but only just started as we were abroad for 3 years
- My wife is a national school teacher
The negative equity mortgage calculator on the PTSB website site suggests that (obvioulsy do not know if we could get approval yet) we could borrow 340k over 25 years if we put in approx 100k (which we have saved) - the repayment would be about €1900/month.
So are our choices as follows:
1. Status quo - pump in 2065/m for, say, 8 years = total 198240, rent during that perido then sell to clear the mortgage, go get another house, put in 100-120k, resulting in a possible 1800/m for 17 years that we would be eligible for at that stage AND have to wait in rental while our kids grow up (first world problem, I know). That scenario will cost 198240+367200 = 565k
The only way option 1 cost would reduce is if we make a 'profit' above what we owe the bank in 8 years.
2. Sell now + move tracker = 1900/m for 25 years = 570k
Am I completely mad? I'm definitely confused. Any comment or advice is greatly appreciated.