Hi,
Myself and GF are planning on buying house in few years. It's in Dublin, houses probably in 300k region. We're working towards target of 100k deposit in order to have lower LTV, obviously planning to save 50k each.
I currently have 65k saved, she has 10k. Hence, i have my half of deposit saved already. It will take her another four years to get to 50k. We are currently renting at cost of 1500 per month, spilt between us. Im saving 1k per month at moment, separate to the house deposit fund. No debts either of us.
Couple of questions:
1. If we aren't going to buy for four years, and i have my 50k, should i invest my 1k monthly savings? Not asking for investment advice, just if it's good ideas in general. I know people say it's silly to invest when you're paying 4% mortgage, but at moment I'm not.
2. Should we use my 65k as deposit and buy sooner than four years? We will have spent almost 80k in rent by that time, which could have been paying mortgage. However, since we won't have bigger deposit, our LTV will be higher, so will we pay more than 80k over lifetime of mortgage? Anyone do a pro/con calculation on that?
3. Would it be unwise using my 65k for deposit in both legal/emotional sense? I think we'd both prefer 50/50 from that perspective.
Any opinions?
Thanks
Myself and GF are planning on buying house in few years. It's in Dublin, houses probably in 300k region. We're working towards target of 100k deposit in order to have lower LTV, obviously planning to save 50k each.
I currently have 65k saved, she has 10k. Hence, i have my half of deposit saved already. It will take her another four years to get to 50k. We are currently renting at cost of 1500 per month, spilt between us. Im saving 1k per month at moment, separate to the house deposit fund. No debts either of us.
Couple of questions:
1. If we aren't going to buy for four years, and i have my 50k, should i invest my 1k monthly savings? Not asking for investment advice, just if it's good ideas in general. I know people say it's silly to invest when you're paying 4% mortgage, but at moment I'm not.
2. Should we use my 65k as deposit and buy sooner than four years? We will have spent almost 80k in rent by that time, which could have been paying mortgage. However, since we won't have bigger deposit, our LTV will be higher, so will we pay more than 80k over lifetime of mortgage? Anyone do a pro/con calculation on that?
3. Would it be unwise using my 65k for deposit in both legal/emotional sense? I think we'd both prefer 50/50 from that perspective.
Any opinions?
Thanks