Can we afford to move house?

GreenBeans

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Partners Income - €55000
My Income €9000 + Carers Allowance

Car Loan approx €1000 - Finished in January 2020
Credit Card - €1500. Hoping to pay this off by February.

Mortgage - €124000 AIB @ 2.95%
House Value €180000

Savings - €3000

2 Children - 14 & 15

We would like to move to a better house. We are living in a 3 bed townhouse at the moment.

Can we afford to move?
 
Partners Income - €55000
My Income €9000 + Carers Allowance

Car Loan approx €1000 - Finished in January 2020
Credit Card - €1500. Hoping to pay this off by February.

Mortgage - €124000 AIB @ 2.95%
House Value €180000

Savings - €3000

2 Children - 14 & 15

We would like to move to a better house. We are living in a 3 bed townhouse at the moment.

Can we afford to move?
What price is the better house?

With Central Bank rules, your max affordability is around 280k.
 
Partners Income - €55000
My Income €9000 + Carers Allowance

Car Loan approx €1000 - Finished in January 2020
Credit Card - €1500. Hoping to pay this off by February.

Mortgage - €124000 AIB @ 2.95%
House Value €180000

Savings - €3000

2 Children - 14 & 15

We would like to move to a better house. We are living in a 3 bed townhouse at the moment.

Can we afford to move?

As you are not 1st time buyers, you will need a 20% deposit for any new house purchase. You appear to be some way off this level of savings.

You may be able to apply for an exemption so this may fall to 10% but even this will take a huge effort to save for, although it isn't impossible. Come February, your high interest loans will be gone, hopefully allowing you to save more.

But keep in mind any upcoming expenditure. If 3rd level education is on the horizon for either of your children, this could be an expensive period for you.

You also don't appear to have any Rainy Day Fund to fall back on, should your partner suddenly lose employment.

You should get a more comprehensive answer if you fill in and post the template in the Money Makeover section here.

Best of luck with your efforts.
 
The houses we are looking at would be around €225000.

We have only about €4000 saved so far in accounts for the children so this is the reason we are wondering if it’s the right time to move. Our main focus in the last 2 years was getting rid of debt.
 
'...As you are not 1st time buyers, you will need a 20% deposit for any new house purchase. You appear to be some way off this level of savings..'
56k of equity?
 
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